July 31 2017
Medgold Resources Corp. (MED.CVE) is a European-focused TSX-V listed exploration and development company targeting gold properties in central and southern Serbia. The company is run by a highly experienced management team with a successful track record of building value in resource companies. Medgold is aiming to become a leading European gold company.
REASONS TO CONSIDER MEDGOLD (MED.CVE)
Serbian near surface targets: Medgold (MED.CVE) possesses significant acreage in the highly prospective exploration regions of Central and Southern Serbia. Medgold has already seen encouraging near-surface results for precious metals in underexplored regions of the Serbo-Macedonia Belt for precious metals (e.g. 40m sawedchannel sample @ 8.3 g/t Au)
A well-funded exploration program: The company has a well-funded exploration program, achieved through a savvy alliance and option agreement with a larger partner (TSX- and NYSE-listed silver producer, Fortuna Silver Mines @US$750m mkt cap). This significantly reduces the potential risk of unknown equity dilution for prospective shareholders, as the potential asset/project dilution is very clearly defined through the option agreements. Furthermore, the optioning of some of the Serbian targets (as well as the direct equity ownership stake of 24% in Medgold) by Fortuna, provides investors with strong validation that Medgold’s exploration ground looks prospective.
The best of both worlds: Smaller gold exploration companies generally tend to fall into two buckets. Either with exploration assets which are outcropping/near surface and high grade; but located in relatively unstable, ‘frontier’ countries. Or with lower grade, deep cover exploration targets, but located in stable jurisdictions. A key feature of Medgold for potential investors, is that it is targeting the near surface, high grade deposits, but also is located in a stable and well-understood jurisdiction and results from the Tlamino Project demonstrate this point. Thus we would consider it attractively placed versus peers on a risk-reward basis.
Focused management: Medgold is in the process of disposing of its Portuguese exploration assets to focus on the highly prospective Serbian assets; where management is increasingly looking to both further define existing explorations targets, and also expand the company’s land holdings. Too often one sees mineral exploration companies spend too much time and too much cash on trying to get results out of land holdings; and we like that Medgold management have shown the discipline to cut assets when they believe the potential upside has become limited.
What to watch for: Newsflow on positive exploration results in Serbia will be a key share price driver.
Medgold Resources Corp. is a European-focused TSX-V listed exploration and development company targeting gold properties in central and southern Serbia. The company is run by a highly experienced management team with a successful track record of building value in resource companies. Medgold is aiming to become a leading European gold company.