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Mundoro Announces Earn-in Agreement with Vale for Exploration of Four Serbian Timok Licenses
Vancouver, British Columbia--(Newsfile Corp. - October 7, 2019) - Mundoro Capital Inc. (TSXV:...
About this update from Mundoro Capital Inc.
[{"type":"text","content":"Mundoro Announces Earn-in Agreement with Vale for Exploration of Four Serbian Timok LicensesVancouver, British Columbia--(Newsfile Corp. - October 7, 2019) - Mundoro Capital Inc. (TSXV: MUN) (www.mundoro.com) (\"Mundoro\" or the \"Company\") announces it has entered into an earn-in agreement (\"Agreement\") with Vale Canada Limited (\"Vale\"), in which Mundoro has granted to Vale an option to earn-in to four of Mundoro's exploration licenses: Sumrakovac, Osnic, Dubrava and Padina (the \"Vale-Mundoro Projects\") located within the Timok Magmatic Complex (\"Timok\") in Serbia. Timok is one of the most prolific metallogenic domains in the Tethyan Belt. Timok hosts the Cukaru-Peki deposit and the producing mines: the Bor copper porphyry underground mine and the Veliki Krivelj copper-gold porphyry open-pit mine (\"Bor Mine Complex\") (see Figure 1: Location Map).Teo Dechev, CEO and President of Mundoro commented, \"Mundoro is pleased to welcome Vale as our latest partner in Serbia, which reflects the prospectivity of Mundoro's land package within the Timok region and demonstrates the growing interest in this region.\"Terms OverviewPursuant to the Agreement, Mundoro has granted to Vale an option to earn, over two primary phases, up to a 75% interest in the Vale-Mundoro Projects by sole funding expenditures of up to US$45 million (C$60 million) as follows:Phase One: Vale has the right to earn a 51% interest in the Vale-Mundoro Projects by sole-funding US$5 million (C$7 million) in expenditures over 3 years from satisfaction of the due diligence condition (\"Phase One\").  Mundoro will be the operator of the Vale-Mundoro Projects in Phase One.Phase Two: Following Phase One, Vale has the right, exercisable within 60 days, to elect to enter Phase Two, whereupon it can earn an additional 24% interest in the Vale-Mundoro Projects, for a total 75% interest, by sole-funding an additional US$40 million (C$53 million) in expenditures (the \"Phase Two Option\") by the fifth anniversary of the election date. If Vale (a) elects not to enter Phase Two, or (b) does not satisfy the Phase Two Option, then Vale will pay to Mundoro an annual fee of US$150,000 (C$198,550) (\"Annual Payment\"). Annual Payments cease upon commencement of commercial production. All Annual Payments will be credited against future payment obligations under the ...