Canadian-based Mundoro Capital is in negotiations with a number of Chinese companies regarding a strategic transaction for the Maoling Gold Project in Liaoning province.
It is in discussions and in various levels of due diligence with a Chinese publicly listed company, a Chinese state-owned company and other companies about the transaction, and Mundoro aims to retain a minority interest or a form of participation in the event the project is developed in the future.
There are no assurances that these negotiations or the due diligence will be successful or that a transaction can be completed.
Throughout 2010, the company continued its efforts to communicate with the Liaoning government and the company's joint venture partner, Liaoning Tianli Mining Company, regarding the status of Tianli's business licence for the future development of the project.
The company continues to attempt to attain a resolution that involves either a strategic transaction with a Chinese group, receiving the necessary licenses to develop the Maoling project directly, or obtaining compensation from the relevant Chinese government. The company is also evaluating legal alternatives in China.
Mundoro has a 79% interest in Maoling through a Sino-Foreign co-operative joint venture with the corporate arm of the Liaoning provincial government which owns 21%. Maoling is a feasibility stage gold deposit and is one of China's largest gold resource deposits with 4.8 million contained gold ounces in the measured and indicated category and an additional 4.4 million contained gold ounces in the inferred category.
Thus far, two deposits that outcrop at surface have been outlined at Maoling in which disseminated, free-milling gold mineralization occurs within a sequence of metasedimentary rocks.
In 2005, the renewal of the exploration licence was deferred pending the renewal of a business license for Tianli.
Mundoro's CEO and president Teo Dechev says, “Mundoro is working with Chinese groups towards a strategic transaction and at the same time building a portfolio of exploration stage properties which can add value to shareholders.
“As part of the project generation effort, we have submitted an application for three mineral concessions in Durango State, Mexico. We will continue to evaluate development stage projects and corporate opportunities and weigh these opportunities against the value they would create for shareholders and the necessity to effectively use cash.”