Mundoro Mining Inc.

Mundoro Mining Inc.

September 20, 2005 08:24 ET

Mundoro Mining Inc. Announces $25.0 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) -


Mundoro Mining Inc. ("Mundoro" or "the Company") (TSX:MUN) is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Haywood Securities Inc. and including Sprott Securities Inc. pursuant to which the underwriters have agreed to purchase 5,100,000 units (the "Units") on a bought deal substituted purchaser basis and up to a further 3,400,000 Units on a best efforts agency basis, at a price of Cdn.$2.95 per Unit for gross proceeds of Cdn.$25.0 million.

Each Unit will consist of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will entitle the holder to purchase one common share at a price of C$4.00 for the period of two (2) years following closing. If the common shares of the Company trade at a volume-weighted average price of not less than C$5.00 for 15 consecutive trading days during the term of the warrant, then the Warrants must be exercised within 15 business days after notice of that event, failing which they will expire.

Net proceeds of the offering will be used to fund further exploration and development of the Maoling Gold Project in Liaoning Province, China and for general and corporate purposes.

The offering is subject to receipt of all necessary approvals including the approval of the Toronto Stock Exchange.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a Vancouver-based, TSX listed resource company focused on the exploration and development of the multi-million ounce, feasibility stage Maoling gold deposit in Liaoning Province, China. The Company has a 79% interest in the project through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government, and has been aggressively exploring the 20 square kilometer exploration license area. 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 altered phyllitic metapelite to meta-siltstone with 3-5% disseminated sulphide mineralization. A pre-feasibility study completed in June of 2005 demonstrated the economic viability of developing a large-scale open-pit mine on the Zone 1 orebody to produce an average of approximately 328,000 ounces of gold per year over 8 years. Significant opportunity remains to both optimize the mine's design and to expand the overall resource-base for consideration in the final feasibility study through ongoing infill and expansionary drilling.

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 Mining Inc.
    Colin H. McAleenan
    Chairman and CEO
    (604) 669-8055
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055
    (604) 669-8056 (FAX)