Mundoro Capital Inc. Enters into Definitive Share Purchase Agreement with China National Gold Group Hong Kong Limited

Strategic Insights -

Mundoro Capital Inc., a Canadian-based mineral exploration and development company, has announced a definitive share purchase agreement with China National Gold Group Hong Kong Limited (CNGHK) to acquire 95% of Mundoro Mining Inc.'s (MMI) issued and outstanding shares for a cash purchase price of CDN$13,800,000. Mundoro will retain a 5% interest in MMI. The agreement aims to advance the development of the Maoling Gold Project, a pre-feasibility stage gold deposit in Liaoning Province, China.

Key Takeaways:

  • Mundoro Capital Inc. will retain a 5% interest in MMI, while China National Gold Group Hong Kong Limited (CNGHK) will acquire 95% of MMI's issued and outstanding shares for a cash purchase price of CDN$13,800,000.
  • The Maoling Gold Project, a pre-feasibility stage gold deposit, has a significant gold resource with 4.8 million gold ounces in the Measured and Indicated category and an additional 4.4 million gold ounces in the Inferred category.
  • The project has a history of delays, with repeated deferrals of the exploration license renewal pending the renewal of a business license for the joint venture company, Liaoning Tianli Mining Company Ltd.
  • CNGHK will have operating control of MMI and its board to advance the development of the Maoling Gold Project, with the goal of attaining a mining permit.
  • Upon attaining a mining permit for Maoling, CNGHK can effect a control sale of its position in MMI to a public entity controlled by CNG or any other Purchaser for Fair Market Value, and Mundoro will have a tag along obligation to sell its 5% in MMI on the same terms and conditions.
  • Raymond James provides a fairness opinion to Mundoro's board of directors, stating that the Strategic Transaction is fair, from a financial point of view, to the Mundoro shareholders.
  • The Strategic Transaction is subject to a number of conditions, including but not limited to receipt of approval by special resolution from Mundoro's shareholders and receipt of Toronto Stock Exchange approval.

Statistics:

  • 4.8 million gold ounces in the Measured and Indicated category
  • 4.4 million gold ounces in the Inferred category
  • CDN$13,800,000 (cash purchase price)
  • 5% interest retained by Mundoro in MMI
  • 95% interest acquired by CNGHK in MMI
  • 161 million tonnes (gold ore) at 0.92 g/t gold (Measured and Indicated category)
  • 158 million tonnes (gold ore) at 0.9 g/t gold (Inferred category)
  • 88 million tonnes (gold ore) at 1 g/t gold (Probable category)
  • 2.8 million ounces of gold (Probable category)
  • CDN$9 million (Mundoro's cash and cash equivalents)
  • 38.4 million shares issued and outstanding
  • 40.6 million shares on a fully diluted basis

Sources:

  • Marketwire
  • Mundoro Capital Inc.