Medgold Resources Corp. announced that it has entered into a definitive Option Agreement with Fortuna Silver Mines Inc. to acquire Fortuna’s 51% interest in the Tlamino Project, located in Serbia (the Project). The terms of the Agreement provide Medgold with an exclusive option (the Option) to purchase Fortuna’s 51% interest in the Project for a cash consideration of USD 3.468 million. The Option is valid for three years and is exercisable (i) at any time at the election of Medgold prior to the expiry of the term of the Option; or (ii) at the date of completion of a sale by Medgold of a 100% interest in the Project to a third party; or (iii) at the date of completion of a merger between Medgold and a third party, whichever arises soonest. In the event that Medgold completes a sale of the Project or corporate merger during the term of the Option and receives consideration in excess of USD 8.84 million (the Sale Consideration), Medgold will pay to Fortuna an asset sale bonus equal to 10.2% of any amount in excess of the Sale Consideration, less all of Medgold’s costs related to the sale or corporate merger. No other consideration is due by Medgold to Fortuna under the terms of the Agreement. The monthly Option Fees referred to in the non-binding letter of intent announced on June 18, 2020 have been struck. Should Medgold not exercise the Option or complete a sale of the Project or corporate merger within the term of the Option, Medgold will transfer its undivided 49% interest in the Project to Fortuna for no consideration, such that Fortuna will then hold an undivided 100% interest in the Project. Pursuant to the terms of the option agreement between Medgold and Fortuna (the Original Option) dated March 6, 2017, and as later amended, Fortuna has earned a 51% interest in the Project by spending USD 3 million in exploration expenditures, as announced on January 30, 2020. The Original Option is terminated under the terms of the Agreement. The granting of the Option is subject to approval by the TSX Venture Exchange. Medgold and Fortuna have a common director, and Fortuna is a significant shareholder of Medgold. If Medgold determines it will exercise the Option, Medgold will seek minority shareholder approval in accordance with National Instrument 61-101, Protection of Minority Securityholders in Special Transactions.