🕐11.12.08 - 17:38 Uhr
MNR 2008 Summary
Attached is a brief summary of Mediterranean Resources activities
during 2008.
We have made significant progress during the year: a first
NI 43-101 compliant resource estimate was completed in March; drilling
was continuous from July through December; and most recently we
announced a Letter of Intent to arrange a joint venture for continued
development of our properties in Turkey.
A definitive joint venture
agreement with Cengiz Holding Co.
for exploration, development and
mining operations is expected by the end of January 2009.
The terms of
the joint venture provide for exploration of our extensive land package
as well as advancing the Corak Project towards a production decision
without equity or debt financing on our part, a situation that should
prove highly favourable to Mediterranean shareholders.
As you are fully aware, economic conditions have deteriorated
dramatically during the past year, and most predictions are that 2009
will be at best a period of consolidation.
There will be many junior
miners facing the prospect of a dry market for their ventures; such
companies will have a difficult time fulfilling their property
obligations and raising capital for exploration budgets, a situation
that will exacerbate their current difficulties regarding share price
depreciation.
Our company has not escaped the general downtrend in share price; we are
currently trading at a market capitalization of $5.2 million (Canadian
dollars) at a time when we have over $4 million in cash; Mediterraneans
properties in Turkey have established resources of over 2 million ounces
gold equivalent, primarily gold with a base metals credit of about 20%,
but like so many other junior mining companies, the market is giving
little or no valuation to our projects.
However, our joint venture
agreement is a strong validation of our properties and projects, as the
terms are entirely directed at acquiring a working interest and are in
no way reflective of our share price.
Our current working capital will
not be exposed to risk or depletion with the finalization of the
agreement.
While every aspect of the 2008 world economy from manufacturing to
finance has suffered serious setbacks and losses, the price of gold has
held up remarkably well.
At the date of this letter gold is up 2% on the
year and is maintaining a spot price of over $800 per ounce.
A
production decision on our Corak Project will likely benefit from a
robust gold price, but the intangibles brought to Mediterranean by its
new partner may prove equally beneficial.
Cenzig is a private company
with strong local experience in mining and in construction, and these
qualities could provide us with economics unattainable by any other
means.
Best Wishes for the Holiday Season and for 2009.
Douglas Hickey
Manager, Investor Relations
890 - 885 Dunsmuir Street
Vancouver, BC.
V6C 1N5
TEL: 604 629-4807
TSX - MNR
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