September 4, 2018, Vancouver, BC – Mundoro Capital Inc. (TSXV: MUN, www.mundoro.com) (“Mundoro” or the “Company”) reports an update on the Company’s exploration activity and filing of its condensed interim consolidated financial statements for the three and six months ended June 30, 2018 and the related management’s discussion and analysis of financial position and results of operations.
Update on Exploration Activity
- In Serbia, drilling is ongoing at the Borsko license (Figure 1) which is sole-funded by Japan Oil, Gas and Metals National Corporation (“JOGMEC”); this drill program of approximately 5,000 m aims to test:
- Target 1: lateral extension of the alteration and mineralisation intersected in drill hole 17-BJ-11 (15m @ 1.04 g/t Au and 6.9 g/t Ag) further to the east-northeast towards what has now been identified as IP chargeability anomaly;
- Target 5: a new target identified to test a shallower and stronger IP chargeability anomaly coincident with magnetic low anomaly at favorable structural intersection located 1,500 m north-northeast of Target 1; and
- Additional targets: identified by both structural interpretation and geophysical programs using CSAMT, ground magnetics, IP-Resistivity and gravity.
- In Bulgaria, drilling has been ongoing at the Saje Project, which is sole-funded by a Private Mining Company; approximately 1,000 meters has been completed in three drill holes with assays pending.
- In Serbia, Mundoro and Freeport-McMoran Exploration Corporation (“Freeport”) are at the planning stage for a field program to commence in Q4-2018 on the Freeport-Mundoro JV Project (Figure 1) which will be sole-funded by Freeport.
- In Serbia, Mundoro has completed follow up geochemical analysis and ground geophysical surveys to further define the prospective targets on the Sumrakovac and Osnic licenses (Figure 1). Mundoro is planning for a small drill program on the Osnic license in Q4-2018 in order to upgrade the targets.
Update on Third Party Discussions
Mundoro has entered into the following transactions for its licenses in Serbia and Bulgaria:
- an earn-in agreement with JOGMEC in which Mundoro has granted to JOGMEC an earn-in option on four of Mundoro’s Serbian exploration licenses: Dubrava, Padina, Borsko Jezero and Zeleznik located within the northern portion of the Timok Magmatic Complex in northeastern Serbia.
- an earn-in agreement with Freeport, in which Mundoro has granted to Freeport an earn-in option on two of Mundoro’s Serbian exploration licenses: Savinac and Bacevica located within the southern portion of the Timok Magmatic Complex in northeastern Serbia. The earn-in agreement transaction with Freeport is subject to closing conditions as outlined in Mundoro’s press release dated July 30, 2018.
- an option agreement with a Private Mining Company on Mundoro’s Saje Project located within the Zvezda license in southeastern Bulgaria.
The Company continues to have discussions regarding future joint ventures for Mundoro’s two Timok South licenses, Sumrakovac and Osnic, and licenses in Bulgaria. Although there are ongoing discussions, the Company cannot provide assurance that a transaction will be concluded as a result of these discussions.
Highlights of the Company’s quarterly results for the last eight quarters is as follows:
|Income Statement items:|
|Exploration and project evaluation||(838)||(689)||(1,438)||(829)||(997)||(650)||(864)||(806)|
|Recoveries from partners||498||465||1,290||532||311||547||499||382|
|Net Exploration and project evaluation||(340)||(224)||(148)||(297)||(686)||(103)||(365)||(424)|
|Corporate expenses (1)||(234)||(185)||(170)||(202)||(235)||(201)||(203)||(149)|
|Loss before other (expenses) income||(574)||(409)||(318)||(499)||(921)||(304)||(568)||(573)|
|Other income (expense) (2)||(149)||4||(114)||(67)||(97)||(64)||1||9|
|Loss for the period||(723)||(405)||(432)||(566)||(1,018)||(368)||(567)||(545)|
|Balance Sheet item:|
|Cash & Cash Equivalents||4,856||4,452||3,522||2,674||2,120||2,054||1,568||1,307|
- Corporate Expenses include accounting and audit, corporate governance, corporate communication, and general and administrative expenses.
- Other income (expense) includes share-based compensation, the impact of foreign exchange fluctuations, and the change in the fair value of the Company’s investments.
Change in Chief Financial Officer
The Company is pleased to announce the appointment of Mr. Christopher Wong as Chief Financial Officer of the Company, effective September 1, 2018. Mr. Wong has over 20 years of experience in financial reporting, corporate controlling and accounting with private and public companies in the natural resources sector and technology sector. The Company would like to thank Avisar Chartered Professional Accountants and Mr. Anil Jiwani for their professional accounting services to Mundoro for the previous two years.
On behalf of the Company,
Teo Dechev, Chief Executive Officer, President and Director
About Mundoro Capital Inc.
Mundoro is a Canadian mineral exploration and development public company focused on building value for its shareholders through directly investing in mineral projects that have the ability to generate future returns for shareholders. The Company currently holds a diverse portfolio of projects in two European countries as well as an investment in a producing gold mine in Bulgaria and a feasibility stage gold project in China. The Company has earn-in agreements with: JOGMEC for the Timok North Projects, Freeport for the Freeport-Mundoro JV Projects, and an option agreement with a private company for the Saje Project in Bulgaria. Mundoro’s common shares trade on the TSX Venture Exchange under the symbol “MUN”.
For further information please contact:
Teo Dechev, CEO, President and Director of Mundoro Capital Inc. at +1-604-669-8055
Technical information contained in this Press Release has been reviewed and approved by Mr. G. Magaranov, P. Geo., Qualified Person as defined by National Instrument 43-101.
Caution Concerning Forward-Looking Statements
This News Release contains forward-looking information and statements (“forward-looking statements”) under applicable securities laws. All statements, other than statements of historical fact, included or incorporated by reference in this News Release are forward-looking statements, including, without limitation, the completion of exploration work on any projects and licenses and results of that exploration work, the prospect of one or more joint ventures and other statements regarding activities, events or developments that the Company 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”, “promising”, “encouraging” 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 Mundoro 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.
Figure 1: Location Map of Partnership Licenses in Serbia