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Jul 14, 2010
IFC To Invest CAD$2.1 Million In Mindoro
EDMONTON, ALBERTA, July 14, 2010 - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today announced that the IFC, a member of the World Bank Group, has agreed to invest approximately CAD$ 2.1 million in Mindoro's financing announced on June 8, 2010, along with additional subscriptions from other institutional and qualified investors. The IFC investment will form part of a second closing expected to occur before the end of July.
Mindoro is also pleased to advise that pursuant to the sale of units under the first closing, it has issued 5,881,632 common shares and an equal number of purchase warrants at a price of CAD$0.208 per unit, for gross proceeds of $1,223,379. Each purchase warrant entitles the holder to acquire one additional common share at a price of CAD$0.31 per share for five years from the date of closing.
Proceeds from the financing will be used for exploration at Mindoro's Agata nickel project in the Surigao district on Mindanao Island of the Philippines. IFC will work with the company to ensure that exploration and any subsequent mine development is carried out in an environmentally and socially sustainable manner.
"We are excited to be making IFC's first mining investment in the Philippines in over twenty years and believe Mindoro has the potential to make the Agata project a success," said William Bulmer, IFC Global Head for Mining. "This investment continues our strategy of supporting early stage exploration companies with financing and advice so that countries can maximize the economic benefits of their natural resources."
IFC offers mining clients in developing countries a broad range of financial and advisory services throughout the mining life cycle. Through its early equity investment program, IFC assists exploration stage companies such as Mindoro with financing and advice on best practice environmental and social management.
"IFC has a long track record of successfully supporting junior exploration companies around the world and we welcome them as shareholders in Mindoro," said Jon Dugdale, Mindoro's CEO. "We look forward to drawing on IFC's guidance and expertise to help ensure that progress at Agata follows recognized best practices for the mineral exploration industry, the environment, and for working with local communities."
Mindoro insiders subscribed for an aggregate 600,000 units in this first closing. Institutional investor Asian Lion Ltd. subscribed for 1,923,077 units, bringing its total undiluted holdings in the company to 11,908,077 common shares, representing 8.5 percent of the company's issued and outstanding shares.
The company paid finder's fees of $1,560 and 7,500 finder's warrants in connection with the first closing. Each finder's warrant is exercisable into one common share at a price of $0.31 for two years.
All securities issued in this first closing are subject to a four-month statutory hold period expiring on November 10, 2010, and to final approval by the TSX Venture Exchange. A news release will be issued when the second closing occurs and final exchange acceptance is received.
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. IFC's new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit www.ifc.org.
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on exploration in the Philippines with a strategy of advancing early stage opportunities to production or joint venture. Mindoro controls major nickel laterite resources in the Surigao District, Mindanao, where potential for a direct shipping ore (DSO) operation to generate early cash flow is being advanced as well as large scale potential for an onsite processing plant.
Mindoro has NI 43-101 Mineral Resource estimates on its Agata North nickel-cobalt project (November 2009) totaling Measured and Indicated 26.92 million dry metric tonnes (DMT) at 1.11% Nickel and 0.06% Cobalt and Inferred 3.79 million DMT at 1.06% Nickel, 0.05% Cobalt. The Surigao regional exploration target is 50 million to 70 million DMT at 0.9% to 1.2% Nickel (January 2010).
Mindoro also has NI 43-101 Mineral Resource estimates on both its Lobo and Archangel (Kay Tanda) gold-silver projects. Mindoro has identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon which are the subject of a farm-in arrangement whereby Gold Fields may earn 75% through direct project expenditure. Gold Fields has commenced drilling copper-gold and high-grade gold targets on the Lobo project.
Drilling on the American Tunnels project has confirmed potential for a near-surface, bulk-tonnage gold target and porphyry copper-gold targets. Other objectives include progressing joint venture discussions on Mindoro's porphyry copper-gold prospects at Surigao.
For further information, contact:
Mindoro Head Office
Penny Gould, VP Investor Relations
Tel: 780.413.8187 or
Toll Free: 1.877.413.8187
Investor Relations -- Canada
Senergy Communications Inc.
Investor Relations - Europe
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The reader is cautioned that the potential quantity and grade of the regional exploration target is conceptual in nature; it is uncertain if further exploration will result in the exploration target being delineated as a mineral resource and there is no guarantee that these resources, if delineated, will be economic or sufficient to support a commercial mining operation. The company's production objectives are intended to provide an indication of management's current expectations and are still conceptual in nature. It is uncertain that it will be established that these resources will be converted into economically viable mining reserves. Until a feasibility study has been completed, there is no certainty that these objectives will be met.
This release may contain forward-looking statements including management's assessments of future plans and operations, and expectations of future production. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. These risks include, but are not limited to, the risks associated with the mining and exploration industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production and the uncertainty of the availability of capital). The assumptions used in the preparation of such statements, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.
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