Mundoro Capital Inc.
TSX : MUN

Mundoro Capital Inc.

May 14, 2009 09:00 ET

Mundoro Q1 2009 Financial Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2009) - Mundoro Capital Inc. (the "Company") (TSX:MUN) announces the filing of the Company's financial results for the quarter ended March 31, 2009. 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.

Highlights

- The Company's consolidated and comprehensive loss for the quarter was $1,051,932 ($0.03 per share) compared with a net profit of $443,320 ($0.01 per share) for the previous period.

- The corporate expenses during this quarter are among the lowest in the last eight quarters, due to management's continued efforts to conserve cash and to not dilute shareholders through raising additional capital.

- The net loss in the quarter was attributable to:

I. expending $67,615 on project management costs;

II. expending $454,922 on corporate expenses;

III. accounting for $563,312 on other accounting items; and

IV. earning interest income of $33,917.

- The Company ended the quarter with $13,229,084 in cash and cash equivalents which equates to C$0.43 per share with no long term debt.

The main areas of focus for the Company during the first quarter had been: corporate development activity in China for Mundoro Mining's efforts to secure a strategic partner; engaging the government of Liaoning directly; and, evaluating investment opportunities in the resources sector for Mundoro Capital. Mundoro Mining has been in discussions with various Chinese companies in regards to a strategic partnership in China and proactive engagement with the various levels of government in China. With respect to the Maoling Gold Project, the Company continued to document and convey the economic, technical and environmental merits of a long life, sustainable mining operation in China to the county, municipal, provincial and national levels of government. The economic benefits to the province of the Maoling Gold Project are many, including: local job creation, skills training and significant indirect job creation; purchase of equipment from Chinese suppliers; operating expenses to be spent in China; taxes collected by the local and provincial government; and gold produced from Maoling to be sold in China. A large scale low-grade operation at Maoling will bring the latest international mining knowledge to China.

Mundoro Capital is looking to employ its financial strength and technical expertise either in conjunction with others or as the principal for resource projects. The Company will continue to monitor carefully value driven opportunities and weigh these opportunities against the necessity to conserve capital during the restricted financial markets.

About Mundoro Capital Inc.

Mundoro Capital Inc. is a Canadian based company which operates as a mineral exploration, development and investment company. The 100% ownership of Mundoro Mining, and its Maoling Gold Project, remains the key asset of the Company. Mundoro Capital will also evaluate and invest in other 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, and resource investment opportunities.

About Mundoro Mining Inc.

Our vision is to create value for all of our stakeholders from responsible mining. Our mission is to build a state of the art large scale goldmine at Maoling meeting or exceeding all applicable Chinese and international environmental standards. 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%. 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. 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. 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.

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 study 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 Capital Inc.
    Robert van Doorn
    Chairman & Chief Executive Officer
    604-630-3593
    or
    Mundoro Capital Inc.
    Teo Dechev
    President, Director and acting Chief Financial Officer
    604-630-3591
    or
    Mundoro Capital Inc.
    Ben Chow
    Investor Relations Manager
    604-630-3587
    info@mundoro.com
    www.mundoro.com