Mundoro Capital Inc.
TSX : MUN

Mundoro Capital Inc.

August 11, 2008 17:04 ET

Mundoro Q2 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 11, 2008) - Mundoro Capital Inc. (the "Company") (TSX:MUN) announces the financial results for the quarter ended June 30, 2008. This press release should be read in conjunction with the Company's interim financial statements and Management Discussion and Analysis, which are available on the Company's website (www.mundoro.com) and SEDAR (www.sedar.com). All dollar amounts are in U.S. dollars unless otherwise stated.

Financial Highlights

- The Company's consolidated and comprehensive loss for the quarter was $335,544 or $0.01 per share compared with a net loss of $2,646,045 or $0.07 per share over the same quarter last year. The net loss is attributable to:

I. earning interest income of $122,014;

II. recovering $149,821 on non-cash accounting items;

III. expending $94,038 on Engineering and Exploration; and

IV. expending $513,341 on Corporate Expenses.

- The Company ended the quarter with $16,883,266 in cash with no long term debt.

Company Highlights

Corporate Restructuring

The Company completed the plan of arrangement which was approved at the Company's Annual General and Special Meeting on April 11, 2008. As a result on April 16, 2008, Mundoro Mining Inc. ("MMI") became a wholly owned subsidiary of the newly formed, Mundoro Capital Inc., which immediately began trading on the Toronto Stock Exchange under the ticker symbol "MUN".

The Company owns 100% interest in MMI, which remains a key asset of Mundoro Capital. MMI's sole focus is the development of the Maoling Gold Project ("Maoling") located in Liaoning Province, China. The resource at Maoling stands at 4.8 million contained gold ounces in the Measured and Indicated category and an additional 4.4 million contained gold ounces in the Inferred category. Maoling has a Reserve of 2.8 million ounces in the Probable category was the basis for the 2005 Pre-Feasibility Study. MMI is working diligently with Chinese agencies and enterprises to achieve renewal of the joint venture company's business license.

Future Investments

The Company has been actively evaluating new investments in resource assets and companies in the natural resources field, which can create value for Mundoro Capital and its shareholders, using management's specialized experience focused on the resource sector in the capital markets. Management believes the current market cycle for resource assets and equities is attractive for investment and as such has been evaluating a number of resource investment opportunities.

Share Repurchase Program

On May 27, 2008, the Company issued a press release announcing its intention to make a Normal Course Issuer Bid ("NCIB") to buy back a maximum of 1,933,203 common shares ("Common Shares") for cancellation through the facilities of the Toronto Stock Exchange ("TSX"). In the opinion of the board of directors of the Company, its common shares have been trading at prices that do not reflect the underlying value of its strong financial position, the fundamental value of Maoling and future growth opportunities. Mundoro believes purchasing back its Common Shares represents an opportunity to enhance value for its shareholders.

Maoling Progress Update

Work on the Feasibility Study for Maoling has been substantially completed apart from some fieldwork and final cost estimation that awaits the business license renewal. Because of the delays in the renewal of Tianli's business license, certain portions of the feasibility study, such as geotechnical drilling for the final pit slope design in Zone 1 and final Chinese cost estimations, cannot be completed at this stage. It is anticipated that once the joint venture company's business license has been renewed, the remaining engineering work needed to produce a National Instruments 43-101 compliant feasibility study and a full Environmental Social Impact Assessment for Maoling will be completed.

About Mundoro Capital Inc.

Mundoro Capital Inc. is a Canadian based company which operates as a mineral exploration, development and investment company. The ownership of Mundoro Mining, and its Maoling Gold Project, remains a key asset of Mundoro Capital and the Company will continue to develop the Maoling Gold Project. Mundoro Capital will also evaluate and invest in resource assets or companies in the natural resources field, which can create value for Mundoro Capital and its shareholders, using management's years of specialized experience in the capital markets focused on evaluating exploration and production assets, resource investment opportunities and structuring unique transactions for investments in the resource sector.

About Mundoro Mining Inc.

Mundoro Mining is a resource company focused on the exploration and development of one of the world's top gold deposits, the Maoling Gold Project. 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% interest. Maoling is a feasibility stage gold deposit located in Liaoning Province, China and is one of China's largest gold resource deposits with 4.8 million contained gold ounces in the Measured and Indicated category and an additional 4.4 million contained gold ounces in the Inferred category. Mundoro Mining has outlined a Reserve of 2.8 million ounces in the Probable category which was the basis for the Pre-Feasibility Study. Thus far, 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. The renewal of the exploration license for Maoling has been deferred since November 2005 pending the renewal of a business license for Mundoro Mining's joint venture company, Liaoning Tianli Mining Company Ltd. Mundoro Mining and its partner, Liaoning Aidi Resources Company Limited, have undertaken a strategy of engagement and building awareness with a wide range of government agencies in order to resolve the issue.

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.

The TSX has neither approved nor disapproved of the information contained herein.

Contact Information

  • Mundoro Capital Inc.
    Robert van Doorn
    Chief Executive Officer & Chairman
    (604) 630-3593
    or
    Mundoro Capital Inc.
    Teo Dechev
    President & Director
    (604) 630-3591
    or
    Mundoro Capital Inc.
    Ben Chow
    Investor Relations Manager
    (604) 630-3587
    Email: info@mundoro.com
    Website: www.mundoro.com