April 26, 2013 13:00 ET
MDN: Metalinvest Requests an Extension for Payment of the Initial Amount Required to Start Exploring at Ikungu
MONTREAL, QUEBEC–(Marketwired – April 26, 2013) – April 26, 2013 – MDN Inc. (“MDN”) (TSX:MDN) reports that it has received a request from Metalinvest Capital Corporation (“Metalinvest”) for an extension to May 13, 2013, for the transfer to MDN’s account of the funds required to start the initial exploration program on the Ikungu property in Tanzania. MDN has granted Metalinvest the extension. On February 25, 2013, MDN announced the signature of an agreement with Metalinvest providing for MDN to transfer a 55% undivided interest in its interest in the prospecting licences of the Ikungu property to Metalinvest. To maintain its 55% undivided interest in MDN’s interest in the Ikungu property, Metalinvest must incur US $14 million in exploration expenditures over a four-year period, including US $3 million by December 31, 2013. Metalinvest may accelerate exploration spending at its discretion. MDN will manage the exploration work.
Pursuant to the agreement, the management committee was set up in March, consisting of two representatives each of MDN and Metalinvest. A US $3 million work program was presented to and approved by the committee. To maintain its option, Metalinvest was to deposit the funds required to cover the expenditures for the first half of 2013 within days of the approval of the exploration program. It was unable to do so, and asked for an extension until May 13.
Ikungu: one of the most advanced gold projects in Tanzania
Ikungu is an advanced exploration project with a large gold-bearing zone and excellent growth potential. It is one of the most advanced projects in Tanzania and one of the few not owned by a major gold producer. The property covers 17.9 km2 and lies 17 km southwest of Musoma and 135 km northeast of Mwanza, Tanzania’s second largest city.
It should be recalled that the 53 holes drilled in earlier exploration programs on Ikungu identified a mineralized zone that extends more than two kilometres along strike and 300 metres vertically. Drilling has delineated four higher-grade gold zones formed around the intersections in holes IKD-45 (8.6 g/t Au over 14.78 m) on Section 2230mE, IKD-48 (3.11 g/t Au over 9.50 m) on Section 2830mE, IKD-51 (3.39 g/t Au over 7.05 m) on Section 3190mE and IKD-36 (13.22 g/t Au over 4.62m) on Section 3610mE.
MDN Inc. (TSX:MDN) is a mining exploration and development company with properties in Quebec and Tanzania. In Tanzania, MDN has a 30% working interest in the Tulawaka gold mine, as well as several gold exploration projects. In Quebec, MDN holds a 72.5% interest in Crevier Minerals Inc., which owns an NI 43-101 niobium-tantalum resource that is presently undergoing a feasibility study.
Marc Boisvert, President and CEO of MDN, is a qualified person as defined in National Instrument 43-101. He has reviewed the scientific and technical information in this news release.
Forward-Looking Statements Other than statements of historical fact, all statements in this release that address events or developments that the Company expects to occur are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, including but not limited to the expectation that Metalinvest will invest the exploration funds required to earn an interest in the Ikungu property, including a planned $3,000,000 in 2013, such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company’s most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company’s forward-looking statements should carefully consider the factors mentioned in the Annual Information Form, as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and as such, the forward-looking statements in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
Claude Dufresne, Ing.
President and Chief Executive Officer
514 866-6500, Ext 221