- A$8
million from Australian prospectus offering and C$2 million received
from IFC
- Institutional
shareholders subscribe for over 50 percent of the concurrent offerings
- Conditional
approval received to list on the ASX
EDMONTON, ALBERTA, November 26, 2010 - Mindoro
Resources Ltd. (TSXV: MIO; Frankfurt: WKN 906167) today announced that it
has closed the prospectus offering in Australia, oversubscribed, having
raised A$8,000,000 from the sale of 40 million CHESS Depository Interests
(CDIs) issued at a price of A$0.20 each (approximately C$0.20).
Mindoro has conditional approval from the
Australian Securities Exchange ("ASX") to list the CDIs on the
ASX. Each CDI will be equivalent to and exchangeable for one common share in
the Company. The CDIs will commence trading on the ASX on or around 7
December, subject to final approval from the ASX (ASX: MDO).
As compensation for underwriting the offering,
Mindoro will pay E.L. & C. Baillieu Stockbroking Ltd. a commission of five percent of the
gross proceeds of the Australian offering.
Institutional shareholders Lion Selection Group,
Asian Lion Ltd and Acorn Capital Limited managed Microcap Investment Trusts
invested a total A$3,000,000 and Mindoro insiders invested a total of A$310,000
through the prospectus offering. Lion Selection Group also exercised four
million warrants raising an additional C$600,000.
In addition the Company closed the concurrent
private placement having received C$2,000,000 through the issue of 10
million shares to the IFC, a member of the World Bank Group.
Mindoro has issued 50 million shares pursuant to
the prospectus and private placement offerings which are subject to a
four-month statutory hold period in Canada and cannot be resold into Canada
during such period, unless an exemption is available from the applicable
prospectus requirements in Canada. However, the CDIs will be tradable
on the ASX upon listing. The four million shares issued pursuant to
the exercise of warrants are not subject to any hold period.
The net proceeds of the two offerings will be used
to advance pre-feasibility and feasibility studies for a staged and
integrated nickel processing operation at the Company�s Agata
Project; to further increase the nickel resource through drilling the
regional Exploration Target, and to advance the portfolio of gold and
copper-gold projects through drilling.
Mindoro President and CEO Jon Dugdale
stated: �Through the support of our institutional shareholder base, which
invested more than 50 percent of the total offering, and a new set of
investors, the funds raised will allow Mindoro to press ahead with the
feasibility study program into an integrated nickel project at Agata. The funds will also enable continued drilling of
the exploration targets with the objective of growing the resource base to
support a major new nickel project development in the Philippines. In
addition the company will review and drill test
its outstanding portfolio of drill-ready gold and copper-gold prospects�.
ABOUT IFC
IFC, a member of the World Bank Group, is the
largest development institution focused on the private sector in developing
countries. IFC creates opportunity for people to escape poverty and improve
their lives by providing financing to help businesses employ more people
and provide essential services, mobilizing capital from others, and
delivering advisory and risk management services to ensure sustainable
development. In a time of global economic uncertainty, IFC's new
investments climbed to a record $18 billion in fiscal 2010. For more
information, visit www.ifc.org.
ABOUT MINDORO
Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO)
and the Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on
nickel, copper and gold 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 the company is assessing the potential to develop a value added
direct shipping ore (DSO) operation to generate early cash flow as well as
large scale potential for an onsite processing plant.
Mindoro has NI 43-101 Mineral Resource estimates
on its Agata nickel-cobalt project totaling
Measured and Indicated 32.6 million dry metric tonnes
(DMT) at 1.04% Nickel and 0.05% Cobalt and Inferred 1.68 million DMT at
1.04% Nickel, 0.04% Cobalt. The Surigao regional
Exploration Target is 50 million to 70 million DMT at 0.9% to 1.2% Nickel
(see press releases dated January 11 and September 8, 2010). Drilling of
the Surigao nickel laterite
exploration target is in progress.
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 Ltd may earn 75 percent interest through direct project
expenditure.
Drilling on the American Tunnels project at Agata has confirmed potential for a near-surface,
bulk-tonnage gold target and deeper porphyry copper-gold targets and at Pan
de Azucar the company has commenced drilling of
copper-gold and massive pyritic sulphide
targets. Other gold and copper-gold targets in the Surigao region will be reviewed prior to developing
proposals for further drilling or joint venture.
For further information, contact:
Mindoro
Head Office - Canada
Penny Gould, VP Investor
Relations penny@mindoro.com
Tel: 780.413.8187 or
Toll Free: 1.877.413.8187
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Investor
Relations -- Canada
CHF Investor Relations
Jeanny So, Director of Operations
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Mindoro Melbourne Office - Australia
Jon Dugdale, President and CEO jon@mindoro.com
Tel: +613.9614.5055
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Investor
Relations - Europe
Robert Sarcher, Director
robert@mindoro.com
Tel. 49.821.6089051
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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 company�s DSO and large scale production
objectives are intended to provide an indication of management�s current
expectations and are still conceptual in nature. It is uncertain that
sufficient resources will be established and if 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. The potential quantity and grade of the
Exploration Target is also 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.
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 with respect to results of exploration, 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. The Company does not
undertake to update forward looking statements except where required to do
so by law.
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