Mundoro Completes Strategic Transaction with China National Gold Hong Kong Limited
Suite 1401, 1030 West Georgia Street Vancouver, BC, Canada V6E 2Y3 telephone: (604) 669‐8055 facsimile: (604) 669‐8056 e‐mail: [email protected] www.mundoro.com
MUNDORO COMPLETES STRATEGIC TRANSACTION WITH CHINA NATIONAL GOLD HONG KONG LIMITED
October 11, 2011, Vancouver, BC ‐ Mundoro Capital Inc. (“Mundoro” or the “Company”) is pleased to announce the completion of the Strategic Transaction with China National Gold Group Hong Kong Limited (“CNGHK”) as announced on August 2, 2011. CNGHK is a wholly‐owned subsidiary of China National Gold Group Corporation (“CNG”), the long established state‐owned enterprise that is currently the largest gold producer in China and is held by the State‐Owned Assets Supervision and Administration Commission of the State Council of China. China Gold Hong Kong Holding Corporation Limited (“CGHK”), a subsidiary of CNGHK has purchased 36,711,858 common shares of Mundoro Mining Inc. (“MMI”) representing 95% of the issued and outstanding shares of MMI for a cash purchase price of $13,800,000. The Company now owns 1,932,203 common shares of MMI, representing 5% of the issued and outstanding shares of MMI.
As previously announced on August 2, 2011, and as outlined in the Company's Information Circular dated August 30, 2011, the Company and CGHK entered into a Shareholders Agreement that governs the shareholding of MMI. CGHK has operating control of MMI and its board with the goal of advancing the development of the Maoling Gold Project. Upon attaining a mining permit for Maoling, CGHK can effect a control sale of its position in MMI to a public entity controlled by CNG, CNGHK or any other purchaser for Fair Market Value, as defined in the Shareholders Agreement and, under these circumstances, the Company would have a tag along obligation to sell its 5% in MMI on the same terms and conditions. If the control sale does not meet the conditions outlined in the Shareholders Agreement, the Company does not have a tag along obligation. Both the Company and CGHK have a mutual right of first refusal to purchase the shares in MMI held by the other party if either party desires to transfer the shares it owns to a third party that does not meet control sale conditions. Mundoro shall nominate one director to the MMI board.
Teo Dechev, President and CEO of Mundoro, commented, “The completion of the Strategic Transaction is an important step for the future development of the Maoling Gold Project. Mundoro's 5% retained interest in MMI is an opportunity for shareholders to attain further value should the CNG group of companies attain a mining permit for Maoling. Going forward, Mundoro is well‐funded to execute its exploration strategy which includes the project generation program that has resulted in 15 mineral concessions staked in Mexico as well as identified geological areas of interest in Europe.”
On behalf of the Company,
Teo Dechev, Chief Executive Officer and President
About Mundoro Capital Inc.
Mundoro 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 its 5% interest in MMI. Maoling is a pre‐feasibility stage gold deposit located in Liaoning Province, China and has a gold resource with 4.8 million gold ounces (161 million tonnes at 0.92 g/t gold) in the Measured and Indicated category and an additional 4.4 million gold ounces (158 million tonnes at 0.9 g/t gold) in the Inferred category. The pre‐feasibility study outlined a Reserve of 2.8 million ounces (88 million tonnes at 1 g/t gold) in the Probable category. Mundoro also has an active project generation program in Mexico where it has been granted title for the Cuencame Property (45,215 hectares) and has made application for twelve additional mineral concessions (184,249 hectares) in Durango and Chihuahua States. The Company's project generation program expands beyond Mexico with the evaluation of properties in Europe. Mundoro is well funded to advance its projects with approximately US$20.8 million as of October 11, 2011. Mundoro has 38.4 million shares issued and outstanding and 40.6 million shares on a fully diluted basis.
Forward‐Looking Statements
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.
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. Resource estimation for the Zone 4 area in 2001 was carried out by Dr. Peter D. Lewis, P.Geo., (Lewis Geoscience Services Inc.), 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 TSXV has neither approved nor disapproved of the information contained herein.
Contact Information
For further information please contact Mundoro Capital Inc. at +1‐604‐669‐8055.