Mundoro Announces Properties Update, Voluntary TSX Delisting, Seeking TSX Venture Listing & New Board Appointment
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MUNDORO ANNOUNCES PROPERTIES UPDATE, VOLUNTARY TSX DELISTING, SEEKING TSX VENTURE LISTING & NEW BOARD APPOINTMENT
July 18, 2011, Vancouver, BC ‐ Mundoro Capital Inc. ("Mundoro" or the "Company" or "MCI") announces an update on its project in China and properties in Mexico and the resulting decision by the Company to voluntarily delist from the Toronto Stock Exchange ("TSX") and seek listing on the TSX Venture Exchange ("TSX Venture"). The Company is pleased to announce the appointment of Richard Moores to the Company's board of directors ("Board") effective July 14, 2011.
Maoling Gold Project, Liaoning, China
The Company continues negotiations with Chinese companies to structure a transaction such that a Chinese company would acquire substantially all of the Company’s interest in the Maoling Gold Project with the Company retaining a form of minority interest ("Strategic Transaction"). Discussions for the Strategic Transaction have advanced to the documentation stage; however there is no assurance a transaction can be consummated. There are no assurances these negotiations or the due diligence will be successful. If the Company sells substantially all of its interest in the Maoling Gold Project it will not meet TSX original listing requirements.
Voluntary TSX Delisting and Application for Listing on TSX Venture
TSX has advised the Company that it believes a change in business has occurred as a result of Mundoro's level of current business operations. Due to this determination the Company will be required to meet TSX’s original listing requirements. In light of the discussions with the TSX, and the Company’s negotiations to sell its interest in the Maoling Gold Project, the Company has elected to voluntarily delist from the TSX and seek a listing on the TSX Venture. The common shares of Mundoro will continue to trade on the TSX under the symbol MUN up to and including September 30, 2011. The Company intends to apply for listing of its common shares on the main board of the TSX Venture and, as an alternative, NEX, a separate TSX Venture board, to ensure, to the extent possible, continued and seamless trading liquidity for shareholders. The Company notes that a transfer in its stock exchange listing to the TSX Venture would provide greater operational efficiency and lower costs for the Company, while allowing shareholders continued liquidity on a recognized exchange. The TSX and TSX Venture, including NEX, are each owned and operated by TMX Group Inc. The Company's common shares continue to trade on the Frankfurt Exchange under the symbol "NGU" and the over the counter market in the United States under "MUNMF" and should remain uninterrupted on these two markets.
Appointment of New Independent Director to Mundoro Capital Board
The Company is pleased to announce the appointment of Richard C. Moores to the Board effective July 14, 2011. Mr. Moores brings over 40 years of experience with geology, mine development and public junior resource companies. He is currently President, CEO and Director of Core Values, a private exploration company active in Colombia. Between May 1996 to February 2008, Mr. Moores was the CEO, President and Director of Anatolia Minerals Development Limited, a publicly listed mineral resources company focused on exploration and development in Turkey which discovered several large copper and gold deposits of which the Copler Gold Mine was put into production in 2011. Mr. Moores began his career with the metals/minerals departments of Conoco and Mobil, where he helped discover and/or develop copper, uranium, gold and synfuels projects. Specializing in porphyry‐style deposits, he has worked with or created a number of resources companies, both private and public directing exploration and development programs in a wide range of countries including the USA (Florence Cu, Sanchez Cu SXEW, et al), Kazakhstan (Balkhash Cu), Mongolia (Erdenet Cu SXEW), Turkey (Copler Au, et al), Colombia (Toldafria Gold, et al), among others. Mr. Moores holds a Bachelors Degree in Geology from Cornell University, a Masters Degrees in Geology from University of Arizona and a Masters of Business Administration from University of Arizona. Mr. Moores has been granted 200,000 stock options of the Company, subject to certain vesting provisions, exercisable for a period of five years.
Cuencame Property, Durango, Mexico
The Company has received from the Mexican General Bureau of Mines ("GBM") the granting of three mineral concessions, comprising the Cuencame Property. The mineral property is located in the Southeast corner of Durango State, bordering the states of Coahuila and Zacatecas, within the highly prospective Altiplano Gold‐Silver belt of north‐central Mexico. The Cuencame Property covers approximately 43,000 hectares in three 100% owned mineral concessions through Mundoro's wholly owned Mexican subsidiary, Mundoro de Mexico, S.A. de C.V.
This region of Mexico is referred to as the Mesa Central Block and is a well known mining district, historically exploited for Ag‐Pb‐Zn deposits associated with Tertiary Volcanism and Epithermal veins or replacement deposits along porous horizons. The discovery of Penasquito, approximately 120 km to the east of the Cuencame Property, along with other recent discoveries on this belt, has shown the potential for bulk tonnage deposits that can host significant gold mineralization. Approximately 25 km west of the Cuencame Property, is the Velardena Properties (ECU Silver Mining Inc.) which have disclosed over 30 million tonnes of silver, gold, lead and zinc mineralization. The Cuencame Property mineral concessions are spatially associated with the Velardena mining camp which is skarn and epithermal vein deposits associated with magnetic highs. Approximately 55 km to the west of the Cuencame Property, is the San Juan Property (Fresnillo Plc), where the main exploration target has been the Lorena vein which is part of an 18 km structure.
The Company has approved a $500,000 exploration budget for an exploration program to be completed over the next twelve months involving geological mapping, geophysical surveys (Magnetics, IP, EM) and drilling.
The Company has submitted applications for five (5) additional mineral concessions in Durango State, which applications are awaiting title grant from the GBM.
On behalf of the board of directors, Teo Dechev, Chief Executive Officer and President
About Mundoro Capital Inc.
Mundoro Capital Inc. is a Canadian based company which operates as a mineral exploration, development and investment company. The Company has an interest in the Maoling Gold Project through it's wholly owned subsidiary Mundoro Mining. Mundoro has an active project generation program in Mexico where it has been granted title for the Cuencame Property (approximately 43,000 hectares) and has made application for five additional mineral concessions in Durango State. Mundoro is well funded to advance its projects with approximately $9 million in cash and cash equivalents. Mundoro has 38.4 million shares issued and outstanding and 40.6 million shares on a fully diluted basis.
About Mundoro Mining Inc.
Mundoro Mining has a 79% interest in Maoling through a Sino‐Foreign co‐operative joint venture with the corporate arm of the Liaoning provincial government which owns 21%. Maoling is a pre‐feasibility stage gold deposit located in Liaoning Province, China and is a significant gold resource deposit in China with 4.8 million contained gold ounces (161 million tonnes at 0.92 g/t gold) in the Measured and Indicated category and an additional 4.4 million contained gold ounces (158 million tonnes at 0.9 g/t gold) in the Inferred category. In 2005 a Reserve of 2.8 million ounces (88 million tonnes at 1 g/t gold) in the Probable category was the basis for the Pre‐Feasibility Study. Two deposits that outcrop at surface have been outlined at Maoling in which disseminated, free‐milling gold mineralization occurs within a sequence of metasedimentary rocks. Since 2005, the renewal of the exploration license for Maoling has been deferred pending the renewal of a business license for Mundoro Mining’s joint venture company, Liaoning Tianli Mining Company Ltd. Despite the Company’s best efforts, Tianli’s business license and exploration license were not renewed and the Maoling Gold Project remains stalled.
Investors are encouraged to review ‘Risk Factors’ associated with the Maoling project as outlined in the Company’s prospectus documents and other regulatory filings, available on the SEDAR website at www.sedar.com.
The pre‐feasibility described herein was prepared to broadly quantify the Maoling Zone 1 deposit’s capital and operating cost parameters, and to further the development of the project. It was not prepared for use as a valuation of the deposits, nor should it be considered to be a final feasibility study. The information contained in the Study reflects various technical and economic conditions at the time of writing that can change significantly over relatively short periods of time. There can be no assurance that the potential results contained in the Study will be realized. The study was prepared by AMEC Americas Ltd. under the direction and oversight of Mr. Mark Pearson P.Eng. of Vancouver, BC, an ‘Independent Qualified Person’ as defined by National Instrument 43‐101. Resource estimation for the Zone 1 area in 2006 was carried out in the Brisbane, Australia office of Golder Associates Pty Limited, an international earth sciences consulting group under the direction and oversight of Dr. Andrew Richmond, MAusIMM, an ‘Independent Qualified Person’ as defined by NI43‐101. NI43‐101 compliant technical reports for the pre‐feasibility study and all reserve and resource estimates have been filed on the SEDAR website at www.sedar.com.
The statements herein that are not historical facts are forward‐looking statements. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in the company’s periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward‐looking statement except as required by law.
The TSX has neither approved nor disapproved of the information contained herein.