Medal you have is made in Serbia or Republic of Srpska (part of Bosnia- http://en.wikipedia.org/wiki/Republika_Srpska )Im not really sure. Coat of arms is pretty similar and I need better pic to ID it. You say that stamp is ZM with is probably Zlatara Majdanpek. http://www.ipm-mpek.rs/zl_kat1.htm With is mint in Serbia . That means medal is probably from Serbia but there is big possibility that Republic of Srpska used mint in Serbia.
Will try to find more info on this one... Greeting from Serbia
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