viewMundoro Capital Inc.

Mundoro Capital building value in south-eastern Europe amid year marked by Freeport-McMoRan option


Freeport can earn into the two licences, which are within the southern portion of the Timok Magmatic complex


Quick facts: Mundoro Capital Inc.

Price: 0.155 CAD

Market: TSX-V
Market Cap: $12.62 m

It's been quite a year for resource group Mundoro Capital Inc (CVE:MUN), dominated by drilling, and last month the firm said it was poised to start the drill bits turning at its Savinac and Bacevica exploration licences in Serbia.

Indeed, the ‘stand-out’ news of 2018 was that these two licenses above were optioned out in July to the mining giant Freeport-McMoRan Inc (NYSE:FCX), which will be the sole funder of work as part of an earn-in agreement.

Home of world-class projects

Freeport can earn into the two licences, which are within the southern portion of the Timok Magmatic complex - the site of world-class projects.

In phase 1, Freeport has the right to earn a 51% interest in the projects by sole-funding US$5 million (C$6.6 million) in expenditures by the third anniversary.

In Phase 2, if it goes ahead,  it can earn an additional 24% by spending a further US$40 million.

Mundoro CEO Teo Dechev told Proactive the goal with all its projects was to get joint ventures. On the Freeport deal, she said what was notable was: : 

"It doesn't require the company to fund the projects unless we choose to and if we do dilute down we have potentially a very valuable royalty and an asset that would be something of interest to a major."


Drilling is expected to be completed in December this year with the release of results expected in February 2019, Mundoro has revealed.

Drilling in year one is estimated to include up to 3,550 meters of diamond drilling in six drill holes with two rigs, aiming to test the following four target areas:

At Savinac, the  TilvaRosh and Marlov Kamen areas - both epithermal targets.

At the Bacevica licence, the Prekostenski porphyry copper-gold target, and the Orlovo Brdo target.

The Savinac license is a 90 sq km area 15 km southwest of the Bor Mine. The property contains a significant area of hydrothermal alteration covering 14 sq km elongated north-south area which hosts epithermal and porphyry target.

Within the alteration, exploration has identified the Tilva Rosh epithermal gold target which contains 12 m (meters) of 30 g/t gold and 171 g/t silver. The Bacevica licence totals 148 sq km and is located directly south of the Savinac licence.

The share price rise is also worth noting and investors have also been getting into the stock and shares have risen around 82% in the last six months.

And there's Borsko.

Meanwhile, at its Borsko Jezero licence in Serbia, the firm is extending the drill program by 2,200 metres to 7,200 metres.

Borsko is one of four projects being completely funded by Japan Oil, Gas and Metals National Corporation (JOGMEC), as part of an option deal announced in 2016.

The drilling, which includes around 5,000 meters of diamond drilling in five holes, aims to test various targets, including one where one hole hit 15m at 1.04 g/t (grams per ton) gold and 6.9 g/t (grams per ton) silver.

The latter part of 2018 has also seen the group recruit a new chief financial officer - Christopher Wong.

Wong has more than 20 years' experience in financial reporting, corporate controlling and accounting with private and public companies in the natural resources sector and technology sectors.

In June, the group said drilling was set to start at the Saje lead-zinc project on its Zvezda licence in Bulgaria, in a bid to confirm the lead-zinc grade and the by-product grades for copper and silver.

Zvezda is one of two contiguous exploration licences in south-eastern Bulgaria in the Rhodopean region, which is part of the Tethyan metallogenic belt. The programme is for 1,000m in three holes.

The project is optioned to an arm’s length third party private company, under an agreement announced last month.

Mundoro is also interested in China and Mexico.

What's the business plan?

Mundoro says that future cash from a mineral property can be in various forms such as royalties, an interest in commercial production, dividend payments or sale of an interest in the mineral property. 

"These are the key exit criteria we seek for any project in to which Mundoro invests," it says.

Its website reads: "Management and the board have a clear and achievable vision with the right technical expertise that puts Mundoro in the best position to create long-term shareholder value.

"Our objective is to use our international expertise in mineral finance, project evaluation, exploration and project development, together with our skilled and dedicated team, to grow

Mundoro’s value as we create long-term shareholder value."

The share price

Shares in Mundoro are at $0.21 in Toronto- up over 10% on the day.

On May 23, shares stood at $0.115.

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on 24/10/18

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