Mundoro Announces Option Agreement with BHP for Exploration Licences in Central Timok, Serbia
Mundoro Announces Option Agreement with
BHP for Exploration Licences in Central
Timok, Serbia
Vancouver, British Columbia--(Newsfile Corp. - October 13, 2025) - Mundoro Capital Inc.
(TSXV:
MUN)
(OTCQB: MUNMF)
(
www.mundoro.com
)
("
Mundoro
" or the "
Company
") announces it has
entered into a definitive option agreement ("
Agreement
") with a wholly owned subsidiary of BHP Group
Limited ("
BHP
"), in which Mundoro has granted to BHP an option to earn-in to seven (7) of Mundoro's
exploration licenses (the "
BHP-Mundoro Central Timok Project
" or the "
Project
") located within the
Timok Magmatic Complex ("
Timok
") in Serbia.
Highlights:
BHP can earn 100% ownership over 10 years by funding US$ 35,000,000 (C$ 48,877,500
1
)
in exploration expenditures.
Mundoro retains a 2% NSR royalty upon exercise.
BHP commits to escalating annual option payments, starting at US$ 323,000 (C$
451,070
1
).
Mundoro will operate the project and earn annual operator fees.
Teo Dechev, CEO of Mundoro commented:
"We are pleased to announce the expansion of our
strategic partnership with BHP, a world leader in the resources industry. This deepened collaboration
focuses on exploring a package of additional exploration licenses in the highly prospective Timok
region of eastern Serbia for copper porphyry systems.
"This expanded relationship combines Mundoro's decade of local and operational expertise in the
Timok region, with BHP's global geoscience team, and specialization in porphyry exploration. This
collaboration leverages the respective strengths of each company to systematically explore this
prospective mineral district.
"Working together under a unified exploration methodology, both teams are committed to intensifying
exploration efforts. This integrated approach, which draws upon Mundoro's deep understanding of
local geological conditions and BHP's cutting-edge global exploration methodologies, is designed to
enhance targeting capabilities and significantly increase the likelihood of new discoveries within the
Timok region. We believe this expanded partnership will drive value for both companies and has the
potential to contribute to the economic development of eastern Serbia."
Agreement Terms
Pursuant to the Agreement, Mundoro has granted to BHP an option to earn, over 10 years (the "
Option
Period
"), a 100% interest in the BHP-Mundoro Central Timok Project.
To exercise the option, BHP
must:
Fund cumulative exploration expenditures
up to US$ 35,000,000 (C$ 48,877,500
1
) by set
milestones:
Anniversary
Cumulative Exploration Expenditures
2nd
US$ 2,500,000
4th
US$ 7,000,000
6th
US$ 14,500,000
8th
US$ 27,000,000
10th
US$ 35,000,000
Make
annual option payments
starting at US$ 323,000 (C$ 451,070
1
), increasing by 2% per
year.
Make
milestone payments
of US$ 2,000,000 (C$ 2,793,000
1
) each when certain resource
estimates are declared, up to a total of US$ 10,000,000 (C$ 13,965,000
1
), or US$ 10,000,000
(C$ 13,965,000
1
) upon exercise of the option if no resource is declared.
Additional Terms:
Operating Fees
:
Mundoro is the initial operator, responsible for overall operations related to the
Project and will receive operating fees. If BHP has funded at least US$ 20,000,000 in exploration
expenditures, or if at least 40,000 meters of cumulative drilling has been completed, BHP may
elect to replace Mundoro as operator.
Advanced Royalty Payments:
Upon exercise of the option, BHP will begin making annual
advanced royalty payments to Mundoro. The value of these advanced royalty payments will be
equal to the dollar amount of the last option payment made under the Agreement prior to the
exercise of the option, and such advanced royalty payments will increase by 2% per year.
Royalty
: Upon exercise of the option, Mundoro will retain a 2% Net Smelter Return Royalty
("
Royalty
").
Subject to the terms of the royalty agreement in respect of the Royalty, BHP will have
the right to purchase 50% of the Royalty before production commencement.
The buy-back price
will be based on a certain tonnage of copper multiplied by the one year average copper price on
the London Metal Exchange.
The aggregated sum of the exploration expenditures, the milestone payments and the option payments,
to exercise the option, is approximately US$ 48,536,759 (C$ 67,781,511
1
) if BHP completes the earn-in
over the Option Period.
Property Overview
The BHP-Mundoro Central Timok Project comprises approximately 418 square kilometers (km²) of
ground and is located within the Timok Magmatic Complex in Serbia (see Figure 1). Timok is one of the
most prolific metallogenic domains in the Tethyan Belt, hosting several significant deposits and major
producing mines, including:
the Cukaru-Peki Deposit
the Malka Golaja Copper-Gold Deposit
the Timok Project
the Čoka Rakita Project
the Bor copper porphyry underground mine, the Majdanpek copper-gold porphyry open-pit mine
and the Veliki Krivelj copper-gold porphyry open-pit mine.
Figure 1: Regional map highlighting Central Timok
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2408/270049_555208efa47c0b78_001full.jpg
A total of C$ 15.4 million has been spent on the Project by Mundoro and previous partners. Extensive
work has been completed across the licenses in the Project area, including comprehensive geophysical
surveys (AMT, IP, and Ground Magnetics), systematic geochemical surveys (stream sampling, soil
sampling, rock sampling, and trenching), and targeted diamond drilling campaigns.
The Project contains numerous targets, with the most advanced being:
the
Skorusa
Porphyry System, a defined 2 km x 3 km copper-gold porphyry system where drilling
confirmed mineralization with an intercept of 201.2 meters at 0.11% Cu and 0.11 g/t Au; and
the
Tilva Rosh
Prospect, which features a large 16 km² lithocap structure with a high-grade
epithermal target at Tilva Rosh South where trenching returned 12 meters at 30.39 g/t Au and
171.27 g/t Ag.
Additional prospective targets include
Markov Kamen
,
Orlovo
,
D-vein, Prekostenski
,
Zlot
1-3,
Bukova, Tilva Mare
,
Glavica, Bacevica North, Gorunov, Oblez SE
and
Branik
(see Figure 2). The
targets exhibit geological features, mineralization styles, and alteration patterns characteristic of
porphyry and related high-sulphidation epithermal systems exhibited elsewhere in the region.
Figure 2: Location Map of target areas in the BHP-Mundoro Central Timok Project
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/2408/270049_555208efa47c0b78_002full.jpg
Qualified Persons
The scientific and technical information contained in this news release was reviewed and approved by R.
Jemielita, PhD, MIMMM, a Qualified Person as defined by National Instrument 43-101 -
Standards of
Disclosure for Mineral Projects
("NI 43-101") and Chief Geologist to the Company.
About Mundoro Capital Inc.
Mundoro is a publicly listed company on the TSX-V in Canada and OTCQB in the USA with a portfolio of
mineral properties focused primarily on base and precious metals. To drive value for shareholders,
Mundoro's asset portfolio generates near-term cash payments to Mundoro and creates royalties
attached to each mineral property optioned to partners.
The portfolio of mineral properties is currently
focused on predominantly copper in two mineral districts: Western Tethyan Belt in Eastern Europe and
the Laramide Belt in the southwest USA.
For more information, please visit
www.mundoro.com
.
Follow our regular updates on:
and
X
.
For further information about Mundoro, please contact:
Teo Dechev, Chief Executive Officer, President and Director
Christian Elferink, Investor Relations Manager
+1-604-669-8055
Caution Concerning Forward-Looking Statements
This News Release contains forward-looking statements. Forward-looking statements can be identified
by the use of forward-looking words such as "will", "expect", "intend", "plan", "estimate", "anticipate",
"believe" or "continue" or similar words or the negative thereof, and include the following: the anticipated
synergies and benefits of the Agreement, completion of the cumulative exploration expenditures, annual
option payments, milestone payments, payment of operating fees and the advanced royalty payments
upon exercise of the option by BHP and the exercise of the option by BHP. The material assumptions
that were applied in making the forward looking statements in this News Release include expectations
as to the mineral potential of the Company's projects, the Company's future strategy and business plan
and execution of the Company's existing plans. We caution readers of this News Release not to place
undue reliance on forward looking statements contained in this News Release, as there can be no
assurance that they will occur and they are subject to a number of uncertainties and other factors that
could cause actual results to differ materially from those expressed or implied by such forward-looking
statements. These factors include risks that the anticipated synergies and benefits of the Agreement will
not be realized as anticipated or at all, risks that BHP will not complete the cumulative exploration
expenditures, annual option payments, milestone payments, payment of operating fees and the
advanced royalty payments upon exercise of the option at contemplated or at all, general economic and
market conditions, exploration results, commodity prices, changes in law, regulatory processes, the
status of Mundoro's assets and financial condition, actions of competitors and the ability to implement
business strategies and pursue business opportunities. The forward-looking statements contained in this
News Release are expressly qualified in their entirety by this cautionary statement. The forward-looking
statements included in this News Release are made as of the date of this News Release and the Board
undertakes no obligation to publicly update such forward-looking statements, except as required by law.
Shareholders are cautioned that all forward-looking statements involve risks and uncertainties and for a
more detailed discussion of such risks and other factors that could cause actual results to differ
materially from those expressed or implied by such forward-looking statements, refer to the Company's
filings with the Canadian securities regulators available on
www.sedarplus.ca
.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
1
Based on mid-market exchange rate $1 USD = 1.397 CAD
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