Maoling Gold Project
China's largest single Gold resource deposit.
Message: Announces 2008 Financial Results
| March 31, 2009 |
| Mundoro Announces 2008 Financial Results |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 31, 2009) - Mundoro Capital Inc. (the "Company") (TSX:MUN) announces the filing of the Company's financial and operating results for the year ended December 31, 2008. The highlights provided in this release should be read in conjunction with the Company's year-end 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 net loss for the year was $1,250,083 or $0.03 per share compared with a net loss of $6,437,128 or $0.17 per share for the previous year. - The corporate expenses during this year are the lowest in the last three years primarily due to management's continued efforts to conserve cash in order to not dilute shareholders through raising additional capital. - The net loss is attributable to: I. expending $484,615 on Project Management costs; II. expending $1,834,217 on corporate expenses; III. accounting for $631,368 on other non-cash accounting items; and IV. earning interest income of $437,381. - The Company ended the year with $13,955,492 in cash and cash equivalents which equates to C$0.44 per share with no debt. Company Chairman and CEO, Robert van Doorn, comments for the past year: "2008 was a difficult year for Mundoro Capital, but also one of change. We strengthened the Company Board as well as the Mundoro Mining Board and management team with the additions of Mr. John Hoey, Mr. Richard Mundie and Mr. Kang Lei. The Company reduced costs and restructured before other companies in our sector, resulting in a cash balance of $13.9 million at year-end. This is sufficient funds for the Company to continue with our government relations and corporate development activity, to complete future feasibility work for the Maoling Gold Project and to seek attractive investment opportunities that present themselves as a consequence of recent financial market activity." For Mundoro Mining, the focus has been to engage in activity that may lead to the business license renewal of the Chinese cooperative joint venture company Liaoning Tianli Mining Company Ltd. ("Tianli") in China. The Company implemented a series of initiatives some of which were: (i) engagement of ALG Consultants for advisory services for the renewal of the business license for Tianli, (ii) discussion with various Chinese companies in regards to a strategic partnership in China, (iii) continued discussions and maintained relationships with various levels of government in China, and (iv) hired personnel in China to manage day to day business operations and assist in government relations. To counter historical misconceptions regarding the technical viability of the Maoling Gold Project ("Maoling"), Mundoro Mining continued to document and convey the economic, technical and environmental merits of a long life, sustainable mining operation at Maoling to the county, municipal, provincial and national levels of the government in China. The technical merits of Maoling are documented in the Pre-Feasibility Study completed in 2005 and have been supplemented with the work completed for the Feasibility Study and the supporting studies for the completion of an Environmental and Social Impact Assessment. The economic benefits of Maoling to the province 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. With the support of the Gaizhou County government in China, Mundoro Mining implemented a community relations program in September 2007 to spend RMB 1.2 million (US$160,000) over a three year period to fund educational, health and sanitation development in Gaizhou County. In 2008, Mundoro Mining provided RMB 280,000 (US$41,000) to the community for the upgrade of the Kuangdonggou Medical Clinic and educational contributions to the middle school in the form of equipment and supplies. President of Mundoro Capital commented, "The global financial crisis has caused a significant drop in equity prices in the broader market. Counter to this, gold hit a high of approximately $989/oz in February 2009 from a low of approximately $713/oz in October 2008. Gold has acted as a store of value and as such the commodity has outperformed other metal commodities and as a result, gold equities of producing companies and select development companies have out-performed and have raised substantial new capital. However, equity prices for junior exploration and most development companies have continued to underperform. The Company believes it has the opportunity, particularly in the current climate of low valuations for the junior resource companies, to identify and invest in new projects which, with thorough due diligence, can be carefully selected to achieve a sound long term investment that has potential for significant appreciation in value from good project fundamentals and strong fundamentals in physical demand such as the case in gold." 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 has evaluated over 25 opportunities to date and 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, 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 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 NI 43-101. NI 43-101 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. |
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