13:48:23 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Mundoro Capital Inc
Symbol MUN
Shares Issued 81,400,000
Close 2020-04-28 C$ 0.135
Market Cap C$ 10,989,000
Recent Sedar Documents

Mundoro files 2019 results, talks 2020 objectives

2020-04-29 17:05 ET - News Release

Ms. Teo Dechev reports

MUNDORO PROVIDES UPDATE ON EXPLORATION ACTIVITY, CORPORATE ACTIVITY AND COVID-19 RESPONSE

Mundoro Capital Inc. has filed audited consolidated financial statements and management's discussion and analysis on SEDAR, posted on the company's website. Along with the filing of financial statements, Mundoro provides an update on its exploration activity and corporate activity in response to the COVID-19 pandemic, which has created evolving guidelines and rules in the jurisdictions where the company operates.

COVID-19 response

Mundoro has been closely monitoring the COVID-19 situation where it operates and has taken precautionary measures at the company's sites and offices to help protect the safety of the company's work force and local communities. The company is following the public health directives for COVID-19 safety outlined by the local governments at each of its operations.

Due to COVID-19 government-mandated restrictions affecting field activity, Mundoro's exploration team is working remotely with project data for interpretation and targeting, as well as converting its project workspaces to 3-D environments for enhanced visualization of targets and further drill planning.

Corporate initiatives to manage costs:

  • As of March 30, 2020, Mundoro had working capital of $3.1-million with no debt and 80.6 million shares outstanding.
  • Mundoro remains in a strong overall financial position as a result of its treasury and the reduction in expenditures in 2020.
  • Mundoro's cash position exceeds the company's exploration work commitments for calendar 2020, as well as general corporate expenditures.

Mundoro's objectives for 2020:

  • Commence exploration on the Vale-Mundoro joint venture projects in the second half of 2020;
  • Add partner(s) for Mundoro's projects available for optioning;
  • Enter into exploration contract for the Svoboda project with Bulgarian government.

Outlook for projects available for option or joint venture

Mundoro continues to have discussions with interested third parties seeking to option Mundoro's available projects and confirming the continued interest in exploring in Timok, Serbia, as well as Bulgaria. Additionally, the company has seven areas under application in Serbia and three areas under application in Bulgaria.

Zeleznik (available for optioning)

Exploration update

Mundoro completed a 450-metre drill program in March, 2020, at the Zeleznik group of licences, which are 100 per cent owned by the company and available for optioning. Zeleznik is directly north of the Majdanpek mine at the north end of the Timok district. The drill program was designed to test the southern extension of the East zone by 200 metres to the south with two inclined drill holes. After the state of emergency related to COVID-19 is lifted in Serbia, the company will send samples to the assay lab in Bor. In the meantime, the exploration team is completing detailed logging and core photo collection, along with XRF analysis and alteration analysis. The company expects to send assays to the lab and receive assay results in second quarter 2020.

Option status

A data room for the project has been opened for third parties which have a confidentiality agreement (CA) signed with the company. Mundoro has received interest and progressed on discussions for this project area.

Vale-Mundoro projects

Exploration update and earn-in status

For the Vale-Mundoro projects, compiled data sets are being reviewed for targeting and exploration planning. Data review includes: drill logs, structural interpretation, geophysical survey review of ground magnetics, CSAMT, and induced polarization and gravity data, as well as alteration and geochemistry analysis. The parties await final regulatory approvals for field exploration activity to be restarted.

Freeport-McMoRan Exploration Corp.-Mundoro projects

Exploration update

For the October, 2019, to March, 2020, drill program, Mundoro deployed three drill rigs and tested four of the five target areas. The original program contemplated 3,500 metres of drilling, but Freeport and Mundoro agreed to substantially increase the scope of the program, completing 8,735 metres by the time the program was suspended due to restrictions related to the COVID-19 pandemic in March. The parties had not yet commenced drilling on the fifth target, Markov Kamen, when exploration work on the property was suspended. The company is waiting for the final batch of assay drill results and intends to provide a market update on the program in second quarter 2020.

All work commitments for the licences have been met and exceeded in investment through to Oct. 30, 2021. Therefore, no further expenditures are required to maintain the licences for these projects.

Markov Kamen (Savinac licence) -- not commenced:

  • Status: Drilling did not commence as the company was awaiting permits from the Forestry Department, and thereafter, a decision was made to terminate drilling due to the state of emergency imposed in Serbia from COVID-19.

Tilva Rosh (Savinac licence) -- completed:

  • Status: Drilling has been completed with a total of 2,980 metres drilled over four drill holes. Interpretation of drill results is expected in second quarter 2020.

Prekostenski (Bacevica licence) -- completed:

  • Status: Drilling was completed for 2,887 metres over six drill holes. Interpretation of drill results is expected in second quarter 2020.

Orlovo Brdo (Bacevica licence) -- completed:

  • Status: Drilling has been completed with a total of 2,325 metres over four drill holes. Interpretation of drill results is expected in second quarter 2020.

D-Vein (Bacevica licence) -- completed:

  • Status: Drilling has been completed with a total of 542 metres over one drill hole. Interpretation of drill results is expected in second quarter 2020.

Option status

To date, Freeport has sole financed a total of $3.2-million (U.S.) ($4.5-million) on the Freeport-Mundoro projects. Freeport informed Mundoro that it is restructuring its exploration programs. On April 28, 2020, Freeport sent notice terminating the earn-in agreement. This results in the entire project areas reverting 100 per cent to Mundoro for no consideration. A data room for the project has been prepared for third parties which have a CA signed with the company. Mundoro has received interest for this project area.

Japan Oil, Gas and Metals National Corp.-Mundoro joint venture project in Serbia

Exploration update

At the Borsko licence, upon completion of the 2019 drill program consisting of 4,000 metres over six drill holes, JOGMEC and Mundoro, the joint venture partners, engaged a geophysical contractor from Australia which has experience in utilizing geophysics for undercover exploration to reprocess the geophysical data. Interpretation from the geophysics review identified further drill targets to follow up at target 1 and additional locations to test on the licence.

JV status

To date, JOGMEC has sole financed a total of $5.8-million (U.S.) ($8.3-million) for the JOGMEC-Mundoro JV project, and has completed the earn-in for a 51-per-cent interest in the project. All work commitments have been met for the JOGMEC-Mundoro JV project during this term. The joint venture is now at a proportionate financing stage, with Mundoro entitled to exercise an option to acquire a 2-per-cent interest in the joint venture from JOGMEC (taking Mundoro to 51 per cent) for nominal consideration and maintain its role as the operator. The JV partners are discussing alternatives for further financing and exploration at Borsko. A data room for the project has been opened for third parties which have a CA signed with the company. Mundoro has received interest for this project area.

JOGMEC-Mundoro generative alliance in Bulgaria

In March, 2019, Mundoro entered into a generative alliance with JOGMEC to generate project areas in the Republic of Bulgaria. The generative alliance was sole financed by JOGMEC and completed in fourth quarter 2019. In first quarter 2020, JOGMEC elected to designate a few target areas to proceed to the next stage of the agreement. Upon receiving relevant government approvals, Mundoro and JOGMEC intend to enter into an agreement to pursue exploration of these target areas.

About Mundoro Capital Inc.

Mundoro is a Canadian-listed precious and base metal company, focused on building value for its shareholders through directly investing in mineral projects that have the ability to generate future returns for shareholders. Mundoro has generated an attractive pipeline of copper and gold projects in Serbia and Bulgaria, as well as an investment in a producing gold mine in Bulgaria, to drive long-term growth and achieve shareholder return. Potential future returns for shareholders from the company's mineral projects can be in various forms such as discovery of mineral resources, royalties, advance royalty payments from partners, a direct interest in production, dividend payments or sale of an interest in a mineral property.

Qualified person

Technical information contained in this press release has been reviewed and approved by G. Magaranov, PGeo, qualified person as defined by National Instrument 43-101.

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