Medusa Mining will acquire the last remaining significant parcel of land for its Co-O gold project with the signing of a 70% joint venture interest with Sierra Mining for its Bunawan leases on East Mindanao Ridge, the Philippines.

The parcel covers 88.8sqkm which is contiguous to Medusa's Co-O project.

Medusa believes that the agreement will significantly increase its exposure to the highly prospective geology of the East Mindanao Ridge in areas with known world-class deposits.

Sierra also controls three projects totalling 263sqkm to the south of the Co-O project in recognized mineralized areas. These tenements are prospective for porphyry copper deposits and high grade gold veins. Sierra also owns two groups of prospects in Papua New Guinea.

Medusa regards the Bunawan tenements as prospective for narrow vein gold deposits and potentially porphyry copper-gold deposits.