UPDATE 1-Secova signs MoU for stake in Ukrainian gold deposit

* To buy 90 pct stake in Sergeevske

* Stake worth about $15 mln

* Shares up 11 pct

July 26 (BestGrowthStock) – Canada’s Secova Metals Corp (SEK.V: )
said it signed a memorandum of understanding with a private
group to buy a 90 percent stake in the Sergeevske Gold Deposit
in Ukraine for about $15 million.

Terms of the agreement allow Secova to buy a 65 percent
stake in the deposit for $5 million spent in exploration over
five years, and a 25 percent stake for $10 million.

The company said a $100,000 cash installment is due at
six-month intervals to maximum of $1 million and is applicable
towards the 25 percent payment.

Secova also has first right of refusal on the sale of the
remaining 10 percent interest, and the first-year exploration
work commitment is $1.5 million.

There are no underlying production royalties or net profit
interests, Secova added.

Shares of the company were up 1.5 Canadian cents at 15
Canadian cents during morning trade Monday on the Toronto
Venture Exchange.

Money

(Reporting by Isheeta Sanghi in Bangalore; Editing by Don
Sebastian) (([email protected]; within U.S. +1
646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:
[email protected]))

UPDATE 1-Secova signs MoU for stake in Ukrainian gold deposit