Mundoro Announces Second Quarter Financials and Management Update
Suite 1401, 1030 West Georgia Street Vancouver, BC, Canada V6E 2Y3 telephone: (604) 669‐8055 facsimile: (604) 669‐8056 e‐mail: [email protected] www.mundoro.com
MUNDORO ANNOUNCES SECOND QUARTER FINANCIALS AND MANAGEMENT UPDATE
August 15, 2011, Vancouver, BC ‐ Mundoro Capital Inc. (“Mundoro” or the “Company”) announces the filing of the Company’s financial results for the quarter ended June 30, 2011. The highlights provided in this release should be read in conjunction with the Company’s interim financial statements and Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in U.S. dollars unless otherwise stated.
The Company’s loss for the six months ended June 30, 2011 was $848,983 ($0.02 per share) compared to a loss of $1,019,772 ($0.03 per share) for 2010. The 2011 loss was principally attributable to the following: China project related costs of $74,634, compared to $232,019 in 2010; other project related costs of $113,890, compared to $NIL in 2010; and, expenditures for corporate expenses of $986,823, compared to $1,007,037 in 2010. The non‐cash items were: foreign exchange gain of $291,972, compared to $219,541 in 2010; and, share‐based payment expense of $4,900, compared to $1,906 in 2010. The Company ended the period with $8,262,834 in cash and cash equivalents, and no debt.
In the second quarter, Mundoro focused on: (i) negotiations and various levels of due diligence with Chinese groups in order to determine if a strategic transaction could be structured relating to the Maoling Gold Project (“Maoling”); (ii) continued effort to communicate with the Liaoning government and the Company's joint venture partner regarding the status of the business license of the Chinese joint venture company, Liaoning Tianli Mining Co., Ltd.; and (iii) continued the project generation activity in Mexico and other jurisdictions as well as evaluated new resource opportunities at the project level and the corporate level.
Subsequent to the end of the quarter, on August 2, 2011, the Company announced that it entered into a definitive share purchase agreement with China National Gold Group Hong Kong Limited (“CNGHK”), a wholly‐owned subsidiary of China National Gold Group Corporation. Pursuant to the share purchase agreement, CNGHK will acquire 95% of the issued and outstanding shares of Mundoro Mining Inc. (“MMI”), the Company’s wholly owned subsidiary, for cash purchase price of CDN$13,800,000, with the Company retaining 5% of the issued and outstanding shares of MMI (the “Strategic Transaction”). The completion of the Strategic Transaction is subject to a number of conditions, including but not limited to, receipt of approval by special resolution from the Company’s shareholders and receipt of appropriate Stock Exchange approval.
Mundoro is pleased to announce the addition of Michel Cormier, as Vice President, Exploration. With the announcement on August 2, 2011 regarding the Strategic Transaction with CNGHK, the Company is focusing on growing its exploration portfolio of properties and beginning the exploration program on the Cuencame Property in Durango, Mexico. Mr. Cormier is a geological engineer with over 35 years of a proven track record in gold and base metals exploration, discoveries, development and mining. He gained expertise in project generation, planning and management of exploration programs leading to the discovery and development of economically feasible gold deposits in Canada, Mexico, Guinea, Niger, Burkina Faso, Algeria and Ghana. Mr. Cormier has solid international expertise in exploration and mine geology, including mineral resource and reserve evaluation, and in underground and open‐cast grade control. Since 2000, he has been acting as Qualified or Competent Person for compliance with Canadian National Instrument 43‐ 101 or JORC code. Mr. Cormier has Bachelor and Master degrees in Geological Engineering from École Polytechnique in Montreal. Mundoro’s CEO and President, Teo Dechev commented, "Mr. Cormier is an excellent addition to the management team and has a wealth of experience as we expand Mundoro’s exploration activity. With the Cuencame Property as our first project in Mexico, Michel will be vital in overseeing the initial exploration program."
With the proposed sale of substantially all of the Company's interest in the Maoling Gold Project, Mr. Alan Riles, metallurgical engineer and Chief Operating Officer of the Company, has resigned his position as officer of the Company and will continue with his consultancy services work with Mundoro and various other clients. Ms. Dechev commented, “Mr. Riles was a valuable member of the management team for the development phase of the Maoling Gold Project which included the feasibility study and environmental studies. We thank him for his contributions."
On behalf of the Company,
Teo Dechev, Chief Executive Officer and President
About Mundoro Capital Inc.
The Company is a Canadian based company with a management team focused on acquisition, exploration, development and investment in mineral resource properties with the ability to host significant resources. The Company has an interest in the Maoling Gold Project through its wholly owned subsidiary Mundoro Mining. Mundoro has an active project generation program in several jurisdictions which includes Mexico where it has been granted title for the Cuencame Property (approximately 43,000 hectares) and has made application for five additional mineral concessions in Durango State. Mundoro is well funded to advance its projects with approximately $8.3 million in cash and cash equivalents. Mundoro has 38.4 million shares issued and outstanding and 40.6 million shares on a fully diluted basis.
About Mundoro Mining Inc.
Mundoro Mining has rights to a 79% interest in Maoling through a Sino‐Foreign co‐operative joint venture with the corporate arm of the Liaoning provincial government which has rights to 21% interest. Maoling is a pre‐feasibility stage gold deposit located in Liaoning Province, China and has a significant gold resource with 4.8 million gold ounces (161 million tonnes at 0.92 g/t gold) in the Measured and Indicated category and an additional 4.4 million gold ounces (158 million tonnes at 0.9 g/t gold) in the Inferred category. In 2005 a Reserve of 2.8 million ounces (88 million tonnes at 1 g/t gold) in the Probable category was the basis for the Pre‐Feasibility Study. The Pre‐Feasibility Study for Maoling was completed in June 2005 and demonstrated the economic viability of developing a large‐scale open‐pit mine for Zone 1 at Maoling. Since 2005, the renewal of the exploration license for Maoling has been deferred pending the renewal of a business license for Tianli. Despite the Company’s best efforts, Tianli’s business license and exploration license have not been renewed and the Maoling Gold Project remains stalled.
Investors are encouraged to review ‘Risk Factors’ associated with the Maoling project as outlined in the Company’s prospectus documents and other regulatory filings, available on the SEDAR website at www.sedar.com.
The pre‐feasibility described herein was prepared to broadly quantify the Maoling Zone 1 deposit’s capital and operating cost parameters, and to further the development of the project. It was not prepared for use as a valuation of the deposits, nor should it be considered to be a final feasibility study. The information contained in the Study reflects various technical and economic conditions at the time of writing that can change significantly over relatively short periods of time. There can be no assurance that the potential results contained in the Study will be realized. The study was prepared by AMEC Americas Ltd. under the direction and oversight of Mr. Mark Pearson P.Eng. of Vancouver, BC, an ‘Independent Qualified Person’ as defined by National Instrument 43‐101. Resource estimation for the Zone 1 area in 2006 was carried out in the Brisbane, Australia office of Golder Associates Pty Limited, an international earth sciences consulting group under the direction and oversight of Dr. Andrew Richmond, MAusIMM, an ‘Independent Qualified Person’ as defined by NI43‐101. Resource estimation for the Zone 4 area in 2001 was carried out by Dr. Peter D. Lewis, P.Geo., (Lewis Geoscience Services Inc.), an ‘Independent Qualified Person’ as defined by NI43‐101. NI43‐101 compliant technical reports for the pre‐feasibility study and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.
The statements herein that are not historical facts are forward‐looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company’s periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward‐looking statement.
The TSX has neither approved nor disapproved of the information contained herein.
Contact Information
For further information please contact Mundoro Capital Inc. at +1‐604‐669‐8055.