Medavinci plc Acquires Orogen Gold and Readmitted to AIM
7th March 2011
Zeus Capital is pleased to announce that it has recently advised MedaVinci plc (“MedaVinci” or the “Company”) on its £3m acquisition of the remaining 51% of Orogen Gold Limited (“Orogen Gold”) that it did not already own. If approved by Shareholders on 4 March 2011, the Company will change its name to Orogen Gold plc and will be readmitted to trading on AIM. Zeus Capital continues to act as NOMAD and joint broker.
In August 2010, MedaVinci acquired 49 per cent. of the issued share capital of Orogen Gold, an Irish company formed in April 2010 to explore, appraise and develop one or more gold deposits in Europe, with an initial focus on the Deli Jovan Gold Project in Serbia. Under the terms of the investment agreement, the Company had an option to acquire the remaining 51 per cent. of the issued share capital of Orogen Gold within 12 months (the “Option”). In February 2011 the Option was exercised and, if approved by shareholders, the Company will complete the acquisition and own 100 per cent. of Orogen Gold going forward.
The main asset of Orogen Gold is the Deli Jovan Gold Project, which comprises a permit area of 69 sq km in eastern Serbia covering two shallow underground gold mines that were last in production in the 1930’s. Under an earn-in agreement, Orogen Gold has the right to an initial interest of 55 per cent. in the Deli Jovan Gold Project if it spends a minimum of C$1.5 million on exploration by 23 June 2012 and a further interest of 20 per cent. will be obtained upon an additional spend of C$2.0 million by 23 December 2013, giving Orogen Gold a potential aggregate interest of 75 per cent. in the Deli Jovan Gold Project. The first objective of a detailed and phased exploration programme is to demonstrate an initial 100,000 oz inferred gold resource which is envisaged to be sufficient to underpin two to three years of mine production.
The Company’s medium term strategy is to develop Deli Jovan as a revenue generating project which will provide a base to expand into other gold project exploration development opportunities in Europe and further east.