Mindoro Resources Ltd.
TSX VENTURE : MIO
FRANKFURT : OLM

Mindoro Resources Ltd.

September 20, 2007 16:52 ET

Mindoro Raises $3.9 Million in First Close of Private Placement

EDMONTON, ALBERTA--(Marketwire - Sept. 20, 2007) - Ms. Penny Gould, CFO of Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167), reports that pursuant to a private placement announced on August 29, 2007, the company has issued 6,589,500 units at a price of $0.60 per unit for gross proceeds of $3,953,700. Each unit consists of one common share and one common share purchase warrant. Each warrant allows the holder to purchase one additional common share at a price of $0.90 in the first year or $1.10 in the second year. The securities issued are subject to a resale restriction period of four months, which expires on January 20, 2008. Finders fees of $209,874 and 209,874 Finders Warrants are payable in connection with the private placement. Each Finders Warrant is exercisable into one common share at a price of $0.60 for two years. Insiders of the company purchased an aggregate 40,000 units in the private placement.

Due to strong institutional demand, Mindoro has arranged for the sale of an additional 6,910,500 units under the private placement, which is expected to close on or about September 26, 2007. Institutional investment in the first and second closings includes: $1,002,000 from Asian Lion Ltd., $500,010 from Lion Selection Ltd., $600,000 from Firebird Global Master Fund and $1,980,000 from RAB Capital.

Mindoro is pleased to note the Asian Lion and Lion Selection participation, which follows Asian Lion's first investment in Mindoro of over $2.0 million in December 2006. The Asian Lion Fund is a venture capital fund providing patient capital for development projects, feasibility studies and advanced exploration in junior mining companies active in Asia.

"We welcome this strong institutional support," stated Tony Climie, Mindoro's President. "By raising over $8.0 million, Mindoro will be assured the financial capability to fund the Agata nickel laterite project to production in 2008, as well as to continue feasibility and scoping work on the Kay Tanda gold project and further advance our very exciting porphyry copper-gold prospects in the Philippines. In addition to our own exploration and development plans, discussions are underway with several potential joint venture partners to further advance Mindoro's extensive portfolio of projects."

A news release will be issued following the second and final closing under this placement. Proceeds from the placement will be used for exploration and development of Mindoro's projects in the Philippines.

ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). In addition to advancing the Agata nickel laterite project towards production, Mindoro has a NI 43-101 resource estimate pending on its Kay Tanda gold-silver project. The company has also identified 22 porphyry copper-gold prospects in the Philippines and is pursuing aggressive strategy of drilling multiple targets in 2008.

This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Mindoro Resources Ltd.
    Penny Gould
    Executive Vice President
    (780) 413-8187
    Email: penny@mindoro.com
    Website: www.mindoro.com
    or
    Ascenta Capital Partners Inc.
    Trent Dahl
    Investor Relations-Canada
    (604) 628-5800 or Toll Free: 1-866-684-4209 ext. 228
    Email: info@mindoro.com
    or
    Argentuminvest GmbH
    Richard Mayr
    Investor Relations-Europe
    +49.9421.785250
    +49.9421.785255 (FAX)
    Email: info@argentuminvest.com