Medgold Resources Corp. (TSXV:MED), a gold explorer focused on Europe, said announced Wednesday it has signed a Letter of Intent (“LOI”) with Klondike Gold Corp (TSXV:KG) to acquire its Portuguese assets, which comprise five gold exploration permits covering 600 square kilometers in northern Portugal. Medgold said it is also conducting a $1.5 million non-brokered private placement to fund exploration activity.
As quoted in the press release:
Dan James, the President of Medgold, said, “By significantly increasing our exploration portfolio, this acquisition underpins our objective to become a leading gold explorer and developer in Western Europe. Our land-holding in Portugal now covers over 1,000 sq km of highly prospective ground, and hosts numerous areas of gold mineralization, such as the Valongo Belt. Recent reinterpretation of the structural setting and geological controls on mineralization within the Valongo Belt, by geological consultant and Company adviser, Jim Mortensen, has led to significant upgrading of the exploration potential of the region.