Mundoro Options Out Saje Lead-Zinc Project in Bulgaria to New Partner
Mundoro Capital reported that it has entered into an Option Agreement with an arm’s length third party private company to which it has granted an option on one of Mundoro’s exploration projects, the Saje Lead-Zinc Project located within the Zvezda license in southeastern Bulgaria.
CEO & President, Teo Dechev commented: “We are delighted to have signed this Agreement with a new partner in the region. Mundoro is achieving our corporate strategy to work with partners on select projects within our portfolio while retaining 100% ownership over a core portion of our portfolio. Realising value from our existing portfolio of over 10 licenses with multiple targets on various license is a key focus for the Company.”
Summary of Terms
Under the terms of the Agreement, the Private Company has committed to drill a minimum of 1000 meters on the Saje Project (“Option Period”). Thereafter, the Private Company will have one month to provide written notice to enter into an agreement with Mundoro in respect of the Saje Project. The Private Company is sole funding all costs during the Option Period. Upon entering into an agreement, the Private Company will pay to Mundoro annual advance royalty payments in January of each calendar year until commercial production. Mundoro will retain a 2% net smelter returns royalty on any metals production at the Saje Project. The Saje Project has no carrying value in the Company’s balance sheet as at December 31, 2018.
Saje Lead-Zinc Project Information
The Saje deposit is located within Mundoro’s 100% owned Zvezda exploration licence area. The Saje deposit is a brownfield area that was initially explored starting in the 1960’s and exploited by a government run company from 1984 to 1992 for Lead and Zinc with by-products of Copper and Silver.
Further Joint Venture Discussions
Mundoro ended Q1-2018 with approximately C$4.7 million in treasury with the Timok North Projects optioned to JOGMEC; and the Timok South Projects, which is the largest contiguous exploration area in the Timok district available for joint venture. The Company continues to have ongoing discussions regarding potential joint ventures for Mundoro’s Timok South Projects licenses: Savinac, Sumrakovac, Bacevica and Osnic. Although there are ongoing discussions, the Company cannot provide assurance that a transaction will be concluded as a result of these discussions.
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