Mundoro Capital Signs Agreement With JOGMEC For Serbian Projects

Mundoro Capital (TSXV:MUN) has signed a binding interim agreement with Japan Oil, Gas and Metals National Corporation (JOGMEC) for the exploration of Mundoro’s Timok projects in Serbia. JOGMEC will have the option to earn a 51 percent interest in the projects over the next two years.
As quoted in the press release:

Pursuant to the Agreement, Mundoro has granted to JOGMEC the following earn-in and option rights to the Timok North Projects. Stage One Earn-in: JOGMEC may earn a 51% interest in the Timok North Projects by making US$3 million in expenditures within the next two years. JOGMEC is under a firm commitment to expend US$1 million of this amount within one year (March 7, 2017). Stage Two Earn-in: Following the Stage One Earn-in, JOGMEC has a right to acquire an additional 24% interest in the Timok North Projects, for a total of 75% interest, by funding the completion of a Feasibility Study by the eighth anniversary of the Agreement (March 7, 2024).
Additional Terms: On completing the Stage Two Earn-In, JOGMEC will have a right, exercisable for a period of 60 days, to purchase an additional 5% interest in the Timok North Projects from Mundoro, for a total of 80% interest. The purchase price for the 5% interest will be determined by an independent appraisal of fair market value. JOGMEC will be responsible for future expenditures on the project through to production if it completes Stage Two, including Mundoro’s share of capital expenditures. Mundoro’s portion of capital expenditures shall be repaid from 50% of the cash flow that Mundoro would otherwise be entitled to receive on a pro rata basis from the joint venture. If either party dilutes below 10%, their interest will convert into a 2% NSR of which up to 1% NSR will be re-purchasable for a total of US$4 million. Mundoro will be the initial operator of the Timok North Projects. A management committee has been formed and is comprised of two representatives from each of Mundoro and JOGMEC.
The Agreement contemplates that the parties will settle a definitive joint venture agreement to govern the transaction. The completion of such an agreement is subject to the parties settling all outstanding commercial terms, as well as other conditions, although to the extent that such agreement is not settled then the terms of the Agreement will govern.

Mundoro President and CEO, Teo Dechev, said:

We are pleased to be partnering with JOGMEC to advance the Timok North Projects in Serbia. JOGMEC has a strong reputation as a long term, strategic partner in mineral projects globally. The prolonged down-turn in the capital markets for mineral explorers makes this strategic alliance with JOGMEC beneficial to Mundoro’s shareholders, by enabling us to advance the projects more rapidly while conserving our treasury for strategic acquisitions. This Agreement represents our second strategic partnership in the last twelve months, which demonstrates the continued interest in the Tethyan belt and Mundoro’s land package.

Click here for the full press release.