Mundoro Announces Strategic Alliance with Vale for Copper in Southwest USA
Mundoro Announces Strategic Alliance with
Vale for Copper in Southwest USA
Vancouver, British Columbia--(Newsfile Corp. - December 23, 2021) -
Mundoro Capital Inc. (TSXV:
MUN) (OTCQB: MUNMF) (
www.mundoro.com
)
("
Mundoro
" or the "
Company
")
is pleased to
announce the establishment of a generative alliance (the "Generative Alliance") between Mundoro and
Vale Exploration Canada Inc. ("Vale"), a subsidiary of Vale S.A., focused on generation of new projects
with high potential to host porphyry copper and related metals deposits within Arizona and New Mexico,
located in the south western United States. Mundoro and Vale have entered into an indicative Term-
Sheet in November 2021 and expect to enter into a definitive agreement in Q1-2022.
In addition to the Generative Alliance, Mundoro and Vale have entered into a definitive Option
Agreement in December 2021 for a property focused on copper porphyry exploration in Arizona
according to the commercial earn-in terms identified below.
Teo Dechev, CEO and President commented: "
We are delighted to establish this generative strategy
with Vale in search for new copper projects in the Laramide Belt in the southwest USA.
The
Company's generative strategy in the Laramide Belt will be focused on porphyry and related copper
systems similar to our focus for these deposit styles in the Western Tethyan Belt of Eastern Europe.
Since our business has focused on the generative approach of directly staking and partnering with
mining companies, Mundoro has completed six deals with companies such as JOGMEC, Vale,
Freeport, and First Quantum, on various properties in our portfolio in the Western Tethyan in Eastern
Europe.
Partner funded work programs along with our generative efforts have invested over C$30 million of
expenditures which brings value to our stakeholders at the community level of where these funds are
invested, to our partners and to our shareholders.
This strategic expansion to broaden our exploration to an additional important copper district in
advance of increasing copper demand and continued supply constraint fundamentals provides further
opportunity for our mining partners and shareholders seeking exposure to copper assets through a
well-structured junior resource company. We look forward to the next two years of generative
exploration in the southwest USA with Vale."
Commercial Terms Highlights
(all dollar amounts in USD). Under the terms of the Generative Alliance,
which has an initial term of two years, Vale will annually sole-fund the generative work performed by MUN
within the Area of Interest ("AOI") that consists of the states of Arizona and New Mexico.
Mundoro will be
the operator of the exploration activities while Vale sole funds the Work Program and Budget in order to
identify projects suitable for designation as Designated Projects.
All generative exploration activities will
be guided by a Technical Committee consisting of two members from each company.
Mundoro will earn
a Management Fee to operate the Generative Alliance.
Each Designated Project will be covered by a
separate option agreement pursuant to which Vale can acquire 100% of the Designated Project through:
(i) sole-funding exploration expenditures during the option period, being up to US$1,500,000 over two
years or US$2,500,000 over three years, (ii) make property payments during the option period of up to
US$500,000 over the three years, (iii) upon completion of the option exercise, make cash payments to
Mundoro which combined equate to US$9,000,000 over four milestones starting at an initial resources
statement for the Designated Project and ending with receipt of permits and licenses necessary to
commence construction, and (iv) as part of the option exercise, grant to Mundoro of a 2% NSR on the
Designated Project, which includes annual advance royalty payments of US$200,000 through
to
commercial production.
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Mundoro Capital Inc.
www.mundoro.com
Mundoro is a Canadian listed royalty generator company with a portfolio of projects focused on base
and precious metals that generate royalties and near-term mineral revenue.
To drive value for
shareholders, Mundoro has generated a portfolio of mineral projects primarily focused on copper and
gold in two mineral belts: Western Tethyan belt in eastern Europe and Laramide belt in the southwest
USA.
Value generated from our mineral properties is through near term revenues from various forms of
payments from partners and long term through the generated royalties.
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: completion of
earn-in expenditures, options and completion of a definitive agreement by the parties. 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 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.sedar.com
.
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.
Teo Dechev,
Chief Executive Officer, President and Director
+1-604-669-8055
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/108367