Acquisition of remaining 20% in the Lichkvaz Gold Project
Iberian Resources has acquired the remaining 20 percent in the Lichkvaz Gold Project, previously held by Global Gold Corporation of the USA, giving Iberian 100 percent equity and full management control of the project.
For the final 20 percent interest in the Lichkvaz Gold Project, Iberian will pay Global Gold Corporation US$1m and issue five million fully paid shares to Global Gold Corporation. The shares will be escrowed for 12 months. If shares in Iberian Resources fall below 50 cents for any consecutive period of thirty trading days during the escrow period then Iberian Resources will issue a further 2.5 million shares to Global Gold Corporation. The company will also give Global Gold Corporation a 2.5 percent net smelter royalty over production from the project. Iberian has combined resources at its Lichkvaz and Montemor gold projects of over two million ounces and is targeting future production of more than 200,000 ounces per annum from these projects. The company is in a strong financial position commissioning its first gold mine.