Reservoir Minerals Inc. announced that it has entered into a definitive agreement (the "Option Agreement") with Midlands Minerals for an option to earn up to a 75% interest in Reservoir's Parlozi Lead-Zinc-Silver project in Serbia.
The Option Agreement provides that Midlands can earn an initial 51% interest in the Project by spending CDN$4.5 million on exploration over four years. A minimum spend of CDN$500,000 before September 30, 2014, including reimbursement of exploration expenditures on the project by Reservoir since June 6th, 2013 and 1,500 meters of drilling, are firm commitments.
Thereafter, Midlands can earn an additional 14% interest over two years by obtaining a mining exploitation permit from the Serbian Government and a further 10% (for a total of 75%) by completing a bankable feasibility study within two years of obtaining a mining exploitation permit.
Completion of the Transaction is subject to customary closing conditions, including receipt of all regulatory approvals, including the consent of the TSX Venture Exchange.
The Project is a 91 square kilometre exploration permit and is conveniently located 35 kilometres south of Belgrade, the capital of Serbia. The Parlozi permit covers occurrences of historical lead-zinc-silver mining in the Kosmaj-Babe area of the Sumadija mining district in central Serbia.
The mineralization in the permit area comprises silver-bearing vein and replacement-type lead-zinc sulphides hosted by carbonate sedimentary rocks associated with intrusive Neogene quartz latite dykes and volcanic breccias. This type of mineralization has long supported lead-zinc-silver mining operations in the region.