May 16, 2013, Vancouver, BC – Mundoro Capital Inc. (TSXV:MUN, www.mundoro.com ) (“Mundoro” or the “Company”) announces the following updates:
First Quarter 2013 Financial Summary
The Company has filed the financial results for the first quarter ended March 31, 2013 (Q1-2013). This information should be read in conjunction with the Company’s unaudited Financial Statements and the Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars unless otherwise stated. The Company changed its presentation currency from United States dollars (US$) to Canadian dollars (CAD$) effective January 1, 2013. This was done to better reflect the Company’s business activities and to make it easier for investors to compare the Company’s financial results with its peers within the minerals exploration industry.
Commenting on Mundoro’s first quarter results and outlook for 2013, CEO & President Teo Dechev said, “We are very pleased with the exploration progress made to date in Serbia on our projects along the Tethyan Belt, several of which surround the Bor Mine and are adjacent to the Timok JV Project in the Timok Complex. The Company continues to exercise discipline in effectively spending our cash on quality projects with good exploration potential. With the current market conditions and the Company’s cash on hand, Mundoro is also actively evaluating prospective development stage or producing mineral resource properties for investment, acquisition or joint venture. This strategy would add to our existing strong project pipeline, drive long-term, sustainable growth and attain production related cash flow sooner, while enhancing shareholder return.”
Mundoro ended the first quarter of 2013 in a strong financial position with $14,918,359 in cash, cash equivalents and short-term investments. The Company has no debt.
The Company recorded a loss for the three months ended March 31, 2013 of $1,209,630 ($0.03 per share), an increase of $256,927 when compared to the loss of $952,703 ($0.03 per share) for the quarter ended March 31, 2012. The increase in loss is primarily the result of the acceleration of exploration activity in Serbia.
Due to the market conditions for mineral resource companies, the Company has reduced its exploration expenditures for 2013. The primary focus of the current work programs is on the exploration properties along the Tethyan Belt in Southeastern Europe.
The Mexico exploration program has been reduced to primarily care and maintenance until market conditions improve. The Company believes there is potential for discovery on this assembled property package; however, due to the market conditions, the Company is pursuing joint venture opportunities for its exploration properties in Mexico as well as other value enhancing transactions for these properties.
All properties staked or acquired are evaluated on a quarterly basis as to whether to continue exploration, progress into development, joint venture to another company, or drop the property. In the first quarter of 2013, the Company applied to drop three properties in Mexico and has dropped two properties in Serbia. At the end of Q1-2013, the Company held ten properties in Serbia, one in Bulgaria and twelve in Mexico. Subsequent to quarter-end, the Company filed with the Mexican General Bureau of Mines to drop the Hidalgo 1, Hidalgo 2, and Tejamen mining concessions, reducing the total number of properties in Mexico to nine.
As part of the strengthening of our management team, in Q1-2013 the Company announced the engagement of a new contract Chief Financial Officer, Thomas Wilson, who brings over 30 years of financial reporting and accounting experience to the Company. Mr. Wilson replaces a third party accounting services firm which had previously filled this role.
The Company announces an addition to the Board of Directors with the appointment Michael Sheridan effective May 15, 2013. Mr. Sheridan is the nominee of the Sheridan Platinum Group Ltd. (“SPG”), which was granted one board seat with certain voting and standstill covenants as a result of a strategic investment in 2012. Mr. Sheridan is the President, Chief Executive Officer, director and principal shareholder of Sheridan Brothers Limited Partnership, a Toronto based investment dealer. Mr. Sheridan has spent his career in the investment industry with a particular focus on the mining sector. Mr. Sheridan was previously the founder and President of a number of private investment companies that were active in many sectors of the securities trading business. Mr. Sheridan holds a Bachelor of Arts degree from the University of Western Ontario.
The Board of Directors welcomes Michael Sheridan as a Director of the Company.
Filing on SEDAR of the Technical Report for Borsko Jezero Copper-Gold Property in Serbia
The Company is also pleased to announce that it has filed on SEDAR a Canadian National Instrument 43-101 (“NI 43-101”) compliant technical report for the Company’s 100% owned Borsko Jezero copper-gold property, located in Bor, Serbia. The Borsko Jezero property is within the Timok Magmatic Complex (TMC) and is situated directly west of the Bor Mine and directly north of the Reservoir/Freeport-McMoRan JV Timok Project (See press release dated April 15, 2013 announcing technical report).
The technical report of the Borsko Jezero copper-gold property was prepared by D. Power-Fardy, P. Geo., EurGeol and Senior Geologist with Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers of Toronto Canada and G. Magaranov, P. Geo., EurGeol and Senior Exploration Manager, SE Europe for Mundoro Capital, Inc. Mr. Power-Fardy is independent of Mundoro. Their review and report are in compliance with Canadian Securities Administrators’ National Instrument 43-101 and the definitions of the Council of Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) standards.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a well-funded, Canadian based, company focused on mineral acquisition, exploration, and development. Our primary focus is advancing our properties on the Tethyan Belt in Southeastern Europe. Mundoro has methodically acquired a district-scale land position on this prolific mineral belt which hosts significant Gold-Copper porphyry and related epithermal deposits. Our strong project pipeline, which also includes assets in Mexico and China, is positioned to drive long-term, sustainable growth in order to attain production and shareholder return.
Caution Concerning Forward-Looking Statements
Information included, attached to or incorporated by reference into this News Release may contain forward looking statements. All statements, other than statements of historical fact, included or incorporated by reference in this News Release are forward-looking statements, including, without limitation, statements regarding activities, events or developments that the Board expects or anticipates may occur in the future. These 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. The material assumptions that were applied in making the forward looking statements in this News Release include expectations as to the Company’s future strategy and business plan and execution of the Company’s existing plans. There can be no assurance that the plans, intentions or expectations upon which these forward-looking statements are based will occur. We caution readers of this News Release not to place undue reliance on forward looking statements contained in this News Release, which are not a guarantee of performance and 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, 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 to reflect new information, subsequent events or otherwise, 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 contact Teo Dechev, CEO, President and Director of Mundoro Capital Inc. at +1-604-669-8055 or Michelle Roth, Roth Investor Relations at +1-732-792-2200.