Mundoro Capital gets Centerra Gold backing for C$4.08M placement
Centerra would hold 9.9 per cent of Mundoro after the share issue, which would fund non-partnered exploration and working capital.
Mara Quinlan
Mundoro Capital Inc. CVEMUN OTCMKTSMUNMF said on Friday that Centerra Gold Inc. TSECG NYSECGAU agreed to invest approximately C$4.08 million through a private placement. Existing holders would retain 90.1 per cent of the expanded share base as Mundoro raises cash for non-partnered exploration and working capital.
Mundoro's TSX Venture shares CVEMUN were quoted at C$0.30 at 1:49 p.m. EST on Nov. 5, before the announcement. The issue price is above that displayed reference, but the retrieved page provided no post-announcement market reaction.
Under the Nov. 6 placement terms, Mundoro would issue 12,374,000 common shares at C$0.33 each. No finder's fees or commissions are payable, and the disclosed securities are common shares.
The accompanying investor rights agreement gives Centerra the right to participate in future equity financings to maintain its ownership. Completion still requires corporate and regulatory approvals, including acceptance by the TSX Venture Exchange.
Read more: Kenorland Minerals gets strategic backing for C$16.27M placement
Centerra or an affiliate would hold 9.9 per cent of Mundoro's outstanding common shares at closing. Mundoro says Centerra would not become an insider or control person under TSX Venture policies, while the new shares carry a hold period of four months and one day from closing.
Centerra is a Toronto-based gold producer with operations in Canada, the United States and Türkiye, according to its corporate overview. Mundoro focuses predominantly on copper properties in Eastern Europe's Western Tethyan Belt and the Laramide Belt in the southwestern United States.
Mundoro's model generates payments from partners and creates royalties attached to properties optioned to them. The Nov. 6 financing release allocates proceeds to non-partnered exploration and general working capital without assigning amounts to individual projects.
In a separate Nov. 6 exploration update, Mundoro said it retains 100 per cent ownership of eight licences in Serbia's Central Timok and Borsko programs. Those licences will be free of their previous options upon termination, and Mundoro intends to seek new partners.
The programs contain seven porphyry targets, five of them drill-ready, according to that update.
Mundoro said prospective partners would have access to historical core re-logged to a common standard, geophysical surveys and integrated three-dimensional target models. It plans to report on discussions in quarterly filings and announce any agreement when it is entered into.
"We now look to carry that work forward with new partners, as partnerships remain central to how Mundoro advances exploration towards discovery," chief executive Teo Dechev said in the exploration update.
Mundoro expects the placement to close on or about Nov. 27, subject to the required approvals and other closing conditions.
