Mundoro Mining Inc.

Mundoro Mining Inc.

June 02, 2005 11:40 ET

Mundoro Reports Exercise of 799,177 Warrants for Cash Proceeds of CDN$ 998,971

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 2, 2005) - Mundoro Mining Inc. ("Mundoro" or "the Company") (TSX:MUN) is pleased to announce that 799,177 warrants issued in November of 2003 pursuant to the Company's Initial Public Offering have been exercised at a price of $1.25 per unit, for cash proceeds of CDN$ 998,971.

The 799,177 shares issued will be held by Golden China Resources Corporation ("GCRC")(TSX VENTURE:AUC), who will own, together with shares previously held, approximately 6% of Mundoro's outstanding common shares.

GCRC has indicated that it intends to hold its shares in Mundoro for investment purposes. Douglas Betts, Chairman & CEO of GCRC stated "Our holdings in Mundoro complement Golden China's business model of acquiring interests in diversified, high-value precious metal assets throughout China."

The cumulative total of warrants exercised since January 1, 2005 is now 1,770,300 units for total cash proceeds of CDN$ 2,212,875, and 1,406,551 units for $1,758,189 since the end of the first quarter. After giving effect to this issue, Mundoro has 27,901,279 common shares outstanding (fully diluted to 32,165,061 shares). The proceeds of these warrant exercises will be added to Mundoro's cash position, which at March 31, 2005 stood at CDN$ 6,612,244.

Retirement from Board of Directors

The Company also announces the resignation of Mr. Frank Crerie from the Board of Directors. Mr. Crerie, one of Mundoro's founding directors, is retiring to pursue personal interests but will continue to contribute to the Company's growth in an advisory capacity. The directors and management of Mundoro extend their appreciation to Mr. Crerie for his leadership and diligence, both as a director and as former Chairman of the Corporation.

About Mundoro Mining Inc.

Mundoro Mining Inc. is a well-financed resource company focused on the exploration and development of the large-scale, pre-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, three deposits that outcrop at surface have been outlined with Indicated Resources of 81.6 million tonnes at 1.2 grams/tonne (3.0 million ounces of gold) and Inferred Resources of 100.4 million tonnes at 1.1 grams/tonne (3.5 million ounces). The resource estimates calculated by AMEC Americas Ltd. are presented using a 0.75 grams gold per tonne cut-off grade. Disseminated, free-milling gold mineralization at Maoling occurs within a sequence of altered phyllitic metapelite to meta-siltstone and is associated with sheeted quartz vein sets and 3-5% disseminated sulphide mineralization. Metallurgical testing has indicated gold recoveries averaging 94% using conventional milling / CIL processing methods. AMEC is now conducting a pre-feasibility study, the results of which are expected shortly, using this processing method in conjunction with an open-pit mining operation on the Indicated Resources of Zone 1.

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
    (604) 669-8056 (FAX)
    Mundoro Mining Inc.
    Cyrus Ameli
    Vice President, Communications
    (604) 669-8055
    (604) 669-8056 (FAX)