Mundoro Capital Inc.
TSX : MUN

Mundoro Capital Inc.

February 28, 2011 20:04 ET

Mundoro 2010 Year End Financial Results and Corporate Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2011) - Mundoro Capital Inc. (TSX:MUN) ("Mundoro", "Company") announces the filing of the Company's financial results for the fiscal year of 2010. The highlights provided in this release should be read in conjunction with the Company's annual 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 loss for 2010 was $3,416,804 ($0.09 per share) compared with a loss of $4,725,783 ($0.12 per share) for 2009. The loss in 2010 was attributable to the following: Expenditures for Maoling Gold Project management activities of $375,305 in 2010, compared to $518,670 in 2009; and Expenditures for corporate expenses of $2,216,950, compared to $2,061,128 in 2009. The non-cash items were: Foreign exchange loss of $343,233, compared to a foreign exchange loss of $637,748 in 2009; and, Stock-based compensation expense of $218,553, compared to expenditures of $1,546,874 in 2009.

In 2010, the Company focused on: (i) continued efforts to communicate with the Liaoning government and the Company's joint venture partner regarding the status of the business license of the Chinese joint venture company, Liaoning Tianli Mining Co., Ltd. ("Tianli"), for the future development of the Maoling Gold Project ("Maoling"); (ii) negotiations and various levels of due diligence with Chinese groups in order to determine if a strategic transaction could be structured relating to Maoling; and (iii) evaluated new resource opportunities at the project level and the corporate level.

Mundoro's CEO and President, Teo Dechev commented, "Mundoro is working with Chinese groups towards a strategic transaction and at the same time building a portfolio of exploration stage properties which can add value to shareholders. As part of the project generation effort, we have submitted an application for three mineral concessions in Durango State, Mexico. We will continue to evaluate development stage projects and corporate opportunities and weigh these opportunities against the value they would create for shareholders and the necessity to effectively use cash. The Company maintains a low share count of 38.3 million shares outstanding and is in a financially strong position with $9.3 million in cash and no debt at the end of December 31, 2010."

The Company is in negotiations and in various levels of due diligence with a Chinese publicly listed company, a Chinese state-owned company, and other companies in order to determine if a strategic transaction could be structured such that the Chinese group would acquire the Maoling Gold Project and the Company would retain a minority interest or a form of participation in the event the Maoling Gold Project is developed in the future. There are no assurances that these negotiations or the due diligence will be successful or that a transaction can be completed. 

Throughout 2010, the Company continued its efforts to communicate with the Liaoning government and the Company's joint venture partner regarding the status of Tianli's business license for the future development of the Maoling Gold Project. The Company continues to attempt to attain a resolution that involves either: a strategic transaction with a Chinese group; receiving the necessary licenses to develop the Maoling Gold Project directly; or obtaining compensation from the relevant Chinese government. The Company is also evaluating legal alternatives in China.

The Company evaluated a number of resource opportunities at the project level and the corporate level as part of the corporate strategy to build a portfolio of resource properties. The key criteria for project selection have been: located in a proven geological belt with existing mineral production; located in a jurisdiction where there is a precedent of developing a resource property from early exploration through to production; located in an area where the Company has strategic advantage from in-house expertise; and, based on detailed evaluation, clearly demonstrates attractive valuation where there is upside for shareholders after acquisition. With increases in commodity prices, the valuation of many resource projects evaluated has outweighed their technical and/or economic merit and as a result, management initiated a project generation program. As a result of this effort, the Company has made an application for three mineral concessions in the State of Durango, Mexico and awaits final approval of the concessions from the Mexican government. The Company will also continue to evaluate project level resource opportunities alongside its project generation program. 

In order to effectively progress the project generation program and continue evaluating development stage projects, the Company has been expanding the technical team with the additions of Mr. Claude Britt as Senior Geological Technical Advisor in the second quarter of 2009 and Mr. Scott Randall as Exploration Geologist in the first quarter of 2011. Mr. Brad Blacketor will be stepping down as Chief Financial Officer, effective March 1, 2011, and will be replaced by Mr. Alnesh Mohan. Mr. Mohan is a Chartered Accountant and a partner at Quantum Partners LLP which is a chartered accounting firm specialized in providing accounting and financial reporting support to junior resource companies. Mundoro thanks Mr. Blacketor for his contributions to the Company and wishes him continuing success in his new position.

On behalf of Mundoro Capital Inc.,

Teo Dechev, Chief Executive Officer and President

About Mundoro Capital Inc.

Mundoro Capital Inc. is a Canadian based company with an international exploration and development team which is focused on the acquisition, exploration and development of mineral resource properties with the ability to host significant resources for the purpose of generating future production. Mundoro 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 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. In 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.

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. 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 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