Mundoro Capital Inc.
TSX : MUN

Mundoro Capital Inc.

November 11, 2009 09:00 ET

Mundoro Third Quarter Financials and Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 11, 2009) - Mundoro Capital Inc. (the "Company") (TSX:MUN) announces the filing of the Company's financial results for the quarter ended September 30, 2009. The highlights provided in this release should be read in conjunction with the Company's interim financial statements and Management Discussion and Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in U.S. dollars unless otherwise stated.

The Company's consolidated loss and comprehensive loss for the quarter was $922,106 ($0.02 per share) compared with an income of $2,470,237 ($0.06 per share) for the previous year's period. The corporate expenses during this quarter remain comparatively low due to management's continued efforts to conserve cash. The net loss in the quarter is attributable to:

  • expending $59,003 on project management costs;
  • expending $443,040 on corporate expenses;
  • accounting for $424,877 on other accounting items; and
  • earning interest income of $4,814.

The Company ended the quarter with $13,256,039 in cash and cash equivalents with no long term debt. The Company's current cash and cash equivalents balance exceeds current estimated costs required to complete the Feasibility Study and environmental work for the Maoling Gold Project ("Maoling") subject to any decisions the Company may make to invest in new resource opportunities. Mundoro Capital continues to evaluate projects for investment in the resources sector. The Company carefully monitors value opportunities and weighs these opportunities against the necessity to conserve capital during this period of restricted financial markets.

In China, the Company continues to focus on corporate development activity for Mundoro Mining's efforts to secure a strategic partner and communicating with the Chinese government regarding the renewal of the business license for the Company's joint venture company in China, Liaoning Tianli Mining Company Ltd. Mundoro Mining has been in discussions with various Chinese companies with respect to a strategic partnership in China. These efforts are in various stages of discussion with no certainty of completion.

In order to build on the technical understanding of the impact of a future operation at Maoling, during the third quarter, Mundoro commissioned Ausenco International Pty Ltd. ("Ausenco") to draft a report on the use of an alternative flotation and Carbon in Leach ("CIL") circuit in the Maoling processing plant flowsheet in an effort to adapt to changes to Chinese tailings dam regulations. Golder Associates ("Golder") was commissioned to provide CIL tailings storage facility design as a result of the updated flowsheet. The report is in progress and Mundoro anticipates a final draft to be completed in December 2009. Mundoro also commissioned Golder to work with local design institutes in China to draft a report on the environmental considerations for mine development in the Maoling area and how that pertains to Chinese government regulations and international mining practices. That report is also in progress and anticipated to be completed in December 2009.

Since 2005, Mundoro has been working with a Beijing based government relations firm to initially assess the status of the business license and the exploration license and thereafter began an effort to build greater awareness for Mundoro's plans for developing Maoling with the local stakeholders. Mundoro has engaged consulting companies to assist the Company in China, such as Intercedent Limited, from May 2005 to present, to assist the Company with the government relations strategy in China and Canada and ALG Consulting from September 2008 to September 2009 to assist the Company with government relations in China. Mundoro has conveyed the economic and environmental merits of Maoling to various levels of the provincial and national levels of government in China and has written to and sought the support of various levels of the provincial government requesting a resolution. As a result of Mundoro's efforts with the City of Yingkou, Maoling's development was discussed at their People's Congress meeting in 2007. At the national level, Mundoro has met with the Ministry of Land and Resources ("MOLAR") and Ministry of Finance and Commerce ("MOFCOM") in Beijing to discuss the issue. From the Canadian perspective, Mundoro has communicated with the Canadian Embassy in Beijing and the Canadian government in Ottawa to seek their assistance in communicating with Chinese government agencies regarding Tianli's business license and exploration license. Both the Canadian Embassy and the Canadian government have raised the issue with their Chinese counterparts in official government meetings.

In order to be consistent with the method chosen for foreign currency translation used to consolidate the Company's subsidiaries accounts in the prior years, the financial statements for the two immediately preceding interim periods, those being three months ended March 31, 2009 and the six months ended June 30, 2009, are now restated by use of the same method of foreign currency translation as stated in Note 2 (f) of the Notes to the Consolidated Financial Statements, for the nine months ended September 30, 2009.  The restated financial statements and the effects for the three months ended March 31, 2009 and the six months ended June 30, 2009 are available in Note 16 of the Notes to the Consolidated Financial Statements for the nine months ended September 30, 2009.

On behalf of the Board of Directors of Mundoro Capital Inc.,

Teo Dechev, President & CEO

About Mundoro Capital Inc.

Mundoro Capital Inc. is a Canadian based company which operates as a mineral exploration, development and investment company. The 100% ownership of Mundoro Mining, and its Maoling Gold Project, remains the key asset of the Company. Mundoro Capital will also evaluate and invest in other 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.

About Mundoro Mining Inc.

Our vision is to create value for all of our stakeholders from responsible mining. Our mission is to build a large scale gold mine at Maoling, that meets or exceeds, all applicable Chinese and international environmental standards. 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 the remaining 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. In 2005 a Reserve of 2.8 million ounces in the Probable category 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 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 study 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 as well as statements regarding: the likelihood and timing of Tianli's business license and exploration license being renewed; the outcome of engaging litigation against the Company; among others. 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.

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