Mundoro Provides Operational Update and Signs Definitive Option Agreement with Vale for Two Additional Exploration Areas in Timok, Serbia
Mundoro Provides Operational Update and
Signs Definitive Option Agreement with Vale
for Two Additional Exploration Areas in
Timok, Serbia
Vancouver, British Columbia--(Newsfile Corp. - May 6, 2021) -
Mundoro Capital Inc. (TSXV: MUN)
(OTCQB: MUNMF) (
www.mundoro.com
)
("
Mundoro
" or the "
Company
") is pleased to announce
the Company and Vale Canada Inc. ("
Vale
") have executed a definitive option agreement for the two
additional exploration areas in Timok, Serbia.
As well, the Company has filed its 2020 Year End Audited
Consolidated Financial Statements and Management's Discussion and Analysis on SEDAR and posted
on the Company's website at
www.mundoro.com
.
Teo Dechev, CEO and President commented:
"Mundoro is growing its list of properties optioned to
partners.
This second agreement with Vale expands our working relationship for two additional
exploration areas in Timok, Serbia.
This agreement demonstrates (i) the continuing interest of the
undercover potential for additional copper and gold resources in the Timok district; (ii) the value
Mundoro's business model brings to partners to leverage our exploration experience in a mineral
region which remains generally unknown and underexplored."
"Mundoro has completed agreements for nine portfolio properties with major mining companies over
the past several years, six of which have been optioned to sequential partners, building on our
knowledge of past exploration.
In 2020, seven of the properties were advanced by partner-funded work
programs. Since 2016, Mundoro's business strategy has benefited from 100% partner-funded
programs of C$12.2 million and Mundoro has generated operator fees of C$1.2 million."
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2020 Operational Highlights
Stable Cash Position and Financing:
In February 2021, the Company completed a non-
brokered private placement for gross proceeds of $3,086,000.
As of March 30, 2021, the
Company held C$4.5 million in cash and cash equivalents and no long-term debt.
Generating Cash Flow:
During the year ended December 31, 2020 and 2019, the Company
received operator fees of C$176,000 and C$379,000 for its role as the operator on exploration
programs for option partners.
Since 2016, Mundoro's business strategy has benefited from 100%
partner-funded programs of C$12.2 million (US$9.6 million) and Mundoro has generated operator
fees of C$1.2 million (US$940,000).
Partner Funded Exploration:
Exploration costs related to the JOGMEC Generative Alliance,
JOGMEC-Mundoro JV Project and the Vale-Mundoro Projects were funded 100% by our option
partners. Recoveries from partners during the year ended December 31, 2020 and 2019
amounted to C$1.8 million and C$3.8 million, resulting in net exploration costs by Mundoro of
C$992,000 and C$1.2 million respectively, primarily for generative programs.
Reducing Corporate Costs:
During the year, and excluding operator fees earned, Mundoro
recorded lower corporate expenses of C$669,000 versus $801,000 in the prior year, resulting
from the reduction of costs in accounting and audit, corporate communication, and corporate
governance expenditures. COVID-19 restrictions on travel and in-person conferences, along with
continuing efforts to reduce non-essential expenditures were the primary factors in the overall
reduction in corporate expenses compared to the same period in 2019.
2021 Operational Highlights and Outlook
Newly Granted Properties from Mundoro's Generative Programs:
Subsequent to year end,
in March 2021 Mundoro was granted an exploration license in central Serbia -
see press release
on March 30, 2021
. The GT7 Copper Project is a copper-gold area totaling 98 sq. km located in
the northern portion of the Serbo-Macedonian Metallogenic Province, which is part of the Tethyan
Belt. The area is considered highly prospective for copper porphyry and related epithermal
mineralisation. The GT7 Copper Project contains exposures of diorite porphyry copper-gold type
quartz stockwork mineralization and is related to precious and base metals veins in surrounding
sedimentary country rocks. Historical data collection is underway with an exploration program
planned for Q3-2021.
Mundoro signed definitive Option Agreement with Vale for two additional exploration
areas in Timok, Serbia:
Mundoro has completed and entered into an option agreement ("
Option
Agreement
") with Vale Canada Limited ("
Vale
"), in which Mundoro has granted to Vale an option
on two exploration licenses ("
Option Projects
") in Timok, Serbia. Mundoro entered into a
Memorandum of Understanding ("
MOU
") with Vale in October 2020 for these two additional
exploration licenses in Serbia -
see press release dated October 22, 2020
.
These Option Projects
are in addition to Mundoro's four Projects which Vale is currently earning into in Timok, Serbia
("
Earn-in Projects
").
Compelling Drill Targets Identified on Vale-Mundoro Earn-in Projects
:
On the Vale Earn-in
Projects, the Vale-Mundoro Technical Committee has approved a US$1.9 million exploration
program to be completed by the end of Q4-2021. Five target areas were identified for the
exploration program, two of which have commenced drill testing.
For further information on the drill
program -
see press release dated April 6, 2021.
Stock Option Grant:
The Company issued 2,650,000 stock options to employees, consultants,
officers and directors on May 4, 2021. The stock options were issued in accordance with
Mundoro's Stock Option Plan, are exercisable into common shares of Mundoro at $0.23 (being the
closing price on the TSX Venture Exchange on May 3, 2021) over a five-year term.
Outlook:
In 2021, Mundoro expects to generate between US$200,000 to US$450,000 in operator
fees and property payments from its existing portfolio. The Company is well funded to continue with
its generative programs to identify new exploration areas, primarily focused on copper and gold
systems that provide opportunities for cash flow from additional earn-ins. The Company has
deployed exploration personnel actively evaluating exploration areas and, in the field, staking
ground.
Qualified Persons
The exploration work programs described herein were supervised by Y. Khrischev, the Company's
Exploration Manager in Serbia and Bulgaria, who has also prepared the above technical information in
this press release in accordance with Canadian regulatory requirements as set out in National Instrument
43-101. The above technical disclosure in this press release has been reviewed, verified, and approved
by R. Jemielita, PhD, MIMMM, a Qualified Person as defined by NI 43-101 and consultant to the
Company.
About Mundoro
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 Serbia and Bulgaria.
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.
For further information, please visit Mundoro Capital
website
.
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/83176