VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 9, 2014) -Reservoir Minerals Inc. ("Reservoir" or the "Company") (TSX VENTURE:RMC)(PINKSHEETS:RVRLF)(BERLIN:9RE) is pleased to report that it has signed a Letter of Intent granting Midlands Minerals Corporation ("Midlands") (TSX VENTURE:MEX) an option to earn up to a 75% interest in Reservoir's Parlozi Lead-Zinc-Silver Project in Serbia.
The Letter of Intent provides that Midlands may spend $4.5 million in exploration over four years to earn an initial 51% interest in the project, of which the first year expenditure of $500,000 is a firm commitment. 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 the Mining Exploitation Permit. Reservoir will be the project operator until Midlands has earned the initial 51% interest.
The grant of the option is subject to completion by Midlands of legal and financial due diligence and the execution of a definitive agreement.
The Parlozi project is a 91 square kilometre exploration permit covering 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 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 Trepca district and other mines in the region.
Mineral exploration in the permit area during the 1970s and 1980s by state-controlled companies of the former Yugoslavia included 36 drill holes totalling 15,105 metres, exploration adits, airborne and ground geophysical surveys, and detailed geological and mineralogical studies. The Company filed a Technical Report on the Parlozi Property on October 18, 2011. This report is available on SEDAR (www.sedar.com).
Dr. Duncan Large, Chartered Engineer (UK) and Eur. Geol., a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators and a consultant to the Company, has approved the technical disclosure in this release and verified the data disclosed.
About the Company:
Reservoir Minerals Inc. is an international mineral exploration and development company run by an experienced technical and management team, with a portfolio of precious and base metal exploration properties in Europe and Africa. The Company operates an exploration partnership business model to leverage its expertise through to discovery.
Neither TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada accepts responsibility for the adequacy or accuracy of this release.