Mediterranean Resources Inks Definitive Agreement with Strategic Shareholder in Turkey

Mediterranean Resources Ltd. (TSX:MNR,FWB:MHM1) signed a Definitive Agreement with a member of the Kaya family, owners of Çeka Insaat ve Ticaret A.S., a specialist construction firm in Turkey, for a strategic investment in its main Turkish subsidiary, Akdeniz Resources Madencilik A.S., Under the terms of the Agreement, the new shareholder may subscribe for around 10% of the shares of Akdeniz Resources Madencilik A.S., the company that holds 100% of Mediterranean’s projects at the Red Mountain site near Yusufeli in north-eastern Turkey.

As quoted in the press release:

The new shareholder is a member of the Kaya family, owners of Çeka Insaat ve Ticaret A.S., a specialist construction firm in Turkey. Under the terms of the Definitive Agreement, the new shareholder may subscribe for around 10% of the shares of Akdeniz Resources Madencilik A.S. (“Akdeniz”), which is the company that holds 100% of Mediterranean’s projects at the Red Mountain site near Yusufeli in north-eastern Turkey. For the first 5% (representing 1.4mn shares of Akdeniz) the investors shall contribute TL 1.4mn (approximately $761,000 CAD) in capital to Akdeniz. Likewise for the second 5%, the amount invested shall be the same Turkish Lira value. In the immediate aftermath of this investment, the investors shall hold 11.76% of the shares of Akdeniz, with the IPO of Akdeniz and the entry of public shareholders eventually reducing this stake to 10.28% of the total shares.

Click here to read the Mediterranean Resources Ltd. (TSX:MNR,FWB:MHM1) press release