Mundoro Capital Inc.
TSX VENTURE : MUN

Mundoro Capital Inc.

April 02, 2012 20:10 ET

Mundoro Announces 2011 Year End Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 2, 2012) - Mundoro Capital Inc. (the "Company" or "Mundoro") (TSX VENTURE:MUN) announces the filing of the Company's financial results for the fiscal year of 2011. The highlights provided in this release should read in conjunction with the Company's annual audited 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 income for the year ended December 31, 2011 was $10,353,832 ($0.27 per share), which included income from discontinued operations of $11,922,533 compared to a loss of $3,158,481 ($0.08 per share) for 2010, which included loss from discontinued operations of $1,646,645. The 2011 income was principally attributable to the following:

  • Gain on disposal of subsidiaries of $13,011,370, compared to $nil in 2010;
  • Other project related costs of $538,109, compared to $nil in 2010;
  • Expenditures for corporate expenses of $1,320,094, compared to $1,064,117 in 2010;
  • Foreign exchange gain of $337,593, compared to a loss of $238,087 in 2010.

During 2011, the Company completed:

  • In October 2011, completed the strategic transaction announced August 2, 2011 regarding the Maoling Gold Project ("Maoling");
  • Listed on the TSX Venture Exchange ("TSXV") as of September 30, 2011;
  • Initiated a district wide exploration program in north-central Mexico by staking 15 properties covering 1800 sq km and began a reconnaissance exploration program on these properties;
  • Filed the NI 43-101 Technical Report on the Cuencame Property in Durango State;
  • Expanded the exploration expertise of the Company with the addition of an exploration manager in Mexico, a senior exploration manager in Europe and a seasoned exploration geologist with 35+ years experience to the Board;
  • Continued with project generation initiatives in Europe and evaluation of advanced stage mineral projects for acquisition or joint venture.

As at December 31, 2011, the Company is in a financially strong position with $19,470,216 in cash, cash equivalents, short-term investments, and no debt.

Pursuant to the Company's NCIB Program, implemented on November 14, 2011, to date the Company has purchased for cancellation a total of 487,500 common shares at an average price of CAD $0.33 per share. After cancellation of these shares the Company's number of Common Shares issued and outstanding is 37,911,776. The purchases were made by the Company through TD Securities Inc., in accordance with the rules of the TSXV, and at market price at the time of acquisition. The Company may purchase for cancellation up to a maximum of 1,919,963 of its Common Shares. The actual number of Common Shares of the Company that will be purchased for cancellation under the NCIB Program, and the timing of such purchases will be determined by management as approved by the Board of Directors of the Company.

The Company's CEO & President, Teo Dechev commented: "2011 was a transitional year for Mundoro with the sale of 95% of the common shares of MMI to China National Gold Group Hong Kong Limited, to take over the development process for the Maoling Gold Project, and the initiation of the Mexico district scale exploration program. Mundoro staked 15 properties in north-central Mexico that target the under evaluated porphyry systems and related epithermal systems in this proven mineral belt. The Company's current exploration program of these properties is focused on identifying drill targets to be tested in the second half of the year. At the same time, Mundoro continues to generate projects in proven mineral belts and evaluate advanced stage projects for acquisition in our focus areas in order to bring the Company closer to its goal of production and generate shareholder value."

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 acquisition, exploration, development and investment company. Mundoro has initiated an exploration program in a prospective mineral region in the Mesa Central belt of Durango and Chihuahua States in Mexico where it has received approval for four concessions covering 673 sq.km. and has made application for twelve additional mineral concessions covering 1319 sq.km. The Company maintains an interest in the Maoling Gold Project through its 5% interest in Mundoro Mining Inc. 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. The Company's project generation initiatives focus on targeting mineral belts which the Company believes have strong exploration potential. Mundoro is well funded to advance its projects and has 37.9 million shares issued and outstanding.

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 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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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