Mundoro Mining Inc.
TSX : MUN

Mundoro Mining Inc.

May 12, 2008 16:36 ET

Mundoro Q1 2008 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2008) - Mundoro Mining Inc. (the "Company") (TSX:MUN) and Mundoro Capital Inc. announce the filing of the Company's financial results for the quarter ended March 31, 2008. The highlights provided in this release should be read in conjunction with the Company's interim 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.

Financial Highlights

- The Company's consolidated and comprehensive income for the quarter was $443,320 or $0.01 per share compared with a net loss of $(2,303,332) or $0.18 per share for the previous period's quarter. The net income is attributable to:

I. earning interest income of $161,973;

II. a gain of $1,112,582 on non-cash accounting items;

III. expending $174,460 on Engineering and Exploration; and

IV. expending $656,775 on corporate expenses.

- The Company ended the quarter with $17,266,417 in cash with no long term debt.

Company Highlights

The Company continues to be focused on the renewal of the business license and advancing the technical and environmental studies as well as the community relations work for the Maoling Gold Project ("Maoling"). Although there has been a long delay in renewing the business license of Tianli, the Company's joint venture company in China, management continues to believe the strategy undertaken of engagement and building awareness with a wide range of government agencies and organizations in order to resolve the issue, will provide a positive outcome. The technical merits of Maoling are well documented in the Pre-feasibility Study completed in 2005 and have been supplemented with the work completed for the Feasibility Study and the preparatory material for the completion of a full Environmental and Social Impact Assessment ("ESIA"). The Company continues to advocate the benefits of development of a modern mine at Maoling which will serve as a showcase in modern mine management methods including environmental protection.

In order to show the commitment Mundoro has to the surrounding area of Maoling and its small rural communities, the Company developed a comprehensive community development program to complement existing efforts within the community and region by facilitating further development of local infrastructure and economic advancement including basic sanitation, the provision of fresh water, local medical service improvements, as well as assistance in scholastic and professional development. Mundoro has committed RMB 1.2 million, to be spent over a three year period to fund educational, health and sanitation development in Gaizhou County.

To augment the corporate strategy of developing Maoling, Mundoro undertook a plan of arrangement in the quarter which was approved at the Company's Annual General and Special Meeting on April 11, 2008. As a result of the completion of the plan of arrangement on April 16, 2008, Mundoro Mining became a wholly owned subsidiary of a newly formed entity, Mundoro Capital Inc., which is now trading on the Toronto Stock Exchange under the ticker symbol "MUN". Mundoro Capital will carry on the business of a mineral exploration, development and investment company. The ownership of Mundoro Mining as a wholly-owned subsidiary remains the largest and key asset of Mundoro Capital which will continue with the business strategy of Mundoro Mining to develop the Maoling Gold Project. Mundoro Capital will also evaluate and invest in resource assets or companies in the natural resources field, which can create value for Mundoro Capital and its shareholders, using management's years of specialized experience in the capital markets focused on evaluating exploration and production assets, resource investment opportunities and structuring unique transactions for investments in the resource sector.

About Mundoro Mining Inc.

Mundoro Mining is a resource company focused on the exploration and development of one of the world's top gold deposits, the Maoling Gold Project. Mundoro Mining 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% interest.

Maoling is a feasibility stage gold deposit located in Liaoning Province, China and is China's largest single, gold resource deposit 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. Mundoro Mining has outlined a Reserve of 2.8 million ounces in the Probable category which 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.

The renewal of the exploration license for Maoling has been deferred since November 2005 pending the renewal of a business license for Mundoro Mining's joint venture company, Liaoning Tianli Mining Company Ltd. Mundoro Mining and its partner, Liaoning Aidi Resources Company Limited, have undertaken a strategy of engagement and building awareness with a wide range of government agencies in order to resolve the issue.

About Mundoro Capital Inc.

Mundoro Capital will carry on the business of a mineral exploration, development and investment company. The ownership of Mundoro Mining as a wholly-owned subsidiary remains the largest and key asset of Mundoro Capital which will continue with the business strategy of Mundoro Mining to develop the Maoling Gold Project. Mundoro Capital will also evaluate and invest in resource assets or companies in the natural resources field, which can create value for Mundoro Capital and its shareholders, using management's years of specialized experience in the capital markets focused on evaluating exploration and production assets, resource investment opportunities and structuring unique transactions for investments in the resource sector.

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. 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

  • Mundoro Mining Inc.
    Robert van Doorn
    Chief Executive Officer & President
    (604) 630-3593
    or
    Mundoro Mining Inc.
    Teo Dechev, Chief Financial Officer
    & Vice President, Corporate Development
    (604) 630-3591
    or
    Mundoro Mining Inc.
    Ben Chow
    Investor Relations Manager
    (604) 630-3587
    Email: info@mundoro.com
    Website: www.mundoro.com