Monday, Jan 13, 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.
