Canadian mining exploration company Mundoro Mining has completed a strategic transaction with a subsidiary of the largest gold producer in China. China National Gold Group Hong Kong (CNG) has purchased 95% of Mundoro with the goal of advancing development of its Maoling Gold Project.
Mundoro’s chief executive officer Teo Dechev says, “The completion of the strategic transaction is an important step for the future development of the Maoling project. Mundoro's 5% retained interest in the company is an opportunity for shareholders to attain further value should the CNG group of companies attain a mining permit for Maoling.”
Maoling is a pre-feasibility stage gold deposit in China’s Liaoning Province with a measured resource of 4.8 million ounces. It was earmarked by the Chinese government for development and foreign investment in 1994 when a state council report identified it as one of 10 deposits to be made available for international participation.
Mundoro conducted a project assessment and finalized an agreement with joint venture company Liaoning Aidi Resources in 2001. The joint venture company Tianli was subsequently formed and an exploration licence covering an area of about 20sqkm was issued in 2002.
The project remains stalled, after Tianli’s licence expired in 2005 and was not renewed. Mundoro’s best efforts to communicate with the Liaoning government to resolve the issues surrounding the renewal of a business licence were unsuccessful last year. However, the company believes this latest strategic transaction may now help to progress the Maoling project.
“Going forward, Mundoro is well-funded to execute its exploration strategy which includes the project generation program that has resulted in 15 mineral concessions staked in Mexico as well as identified geological areas of interest in Europe,” says Teo Dechev.