Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

October 06, 2005 08:48 ET

Mundoro Mining Inc. Closes $25.1 Million Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 6, 2005) -

NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Mundoro Mining Inc. ("Mundoro" or the "Company") (TSX:MUN) announces that it has closed its previously announced financing for a total of 8,500,000 units (the "Units") at a price of Cdn $2.95 per Unit for gross proceeds of approximately Cdn $25.1 million. The financing was led by Haywood Securities Inc. and included Sprott Securities Inc. and Desjardins Securities Inc. and comprised 5,100,000 Units underwritten on a bought-deal substituted purchaser basis and the full exercise of a 3,400,000 Unit over-allotment option.

Each Unit consists 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 the close. 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 by the Company 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 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.

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
    or
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055
    (604) 669-8056 (FAX)
    info@mundoro.com
    www.mundoro.com