30th May 2006 07:00
Sargold and Medoro Amend Agreement SRG: TSX-V MRS: TSX-V and MRL: AIM VANCOUVER, May 30 /CNW/ - Sargold Resource Corporation (TSX-V: SRG)("Sargold" or the "Company") and Medoro Resources Ltd. (TSX-V: MRS, AIM: MRL)announce an amendment to their existing agreement. Under the amended terms asset out in a letter of intent (the "Letter Agreement"), Sargold would, onpayment of (euro) 2.0 million, purchase 90% of the issued and outstandingshares of Sardinia Gold Mines S.p.A. The Letter Agreement also includes theSargold's acquisition from Medoro Resources, SGM Ricerche, the Italian companythat holds the interests to the Monte Ollasteduu gold project. The transactionis subject to all corporate and regulatory approvals. The Monte Ollasteddu project is subject to a joint venture withGoldfields Ltd. The amendments would replace the existing agreement betweenSargold and Medoro that required payments of (euro) 5.0 million over 5 years. In order to facilitate this transaction Sargold has negotiated a privateplacement of up to 18,500,000 million units at CDN$0.18. Each unit consists ofone common share and one half of one common share purchase warrant. One wholeshare purchase warrant entitles the holder, upon exercise, to acquire onecommon share at a price of CDN$0.30 for a period of two years. The above is subject to regulatory approvals. For further information on the Company please visit the Company's websiteat www.sargold.com or at www.SEDAR.com website. ON BEHALF OF THE BOARD OF DIRECTORS, "Richard W. Warke" Richard W. Warke President ON BEHALF OF MEDORO RESOURCES LTD. "Robert Doyle" Robert Doyle, Executive Vice-President The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. For additional information, contact Sargold Resource Corporation or Medoro Resources Ltd. For further information: on Medoro Resources Ltd. please contact RobertDoyle, Executive Vice-President, at (416) 603-4653 or atrdoyle(at)medororesources.com, or visit the company's website atwww.medororesources.com. Medoro Resources Ltd.'s regulatory filings may beobtained from www.SEDAR.com. (MRS. MRL) ENDMEDORO RESOURCES LTDRelated Shares:
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