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Nov 10, 2005
Option to Acquire Additional Interest in Surigao Projects
EDMONTON, AB - Mindoro Resources Ltd. (TSXV: MIO; Frankfurt: OLM) today announced that its Philippine subsidiary, MRL Gold Philippines Inc., has acquired an Option to purchase an additional 15 percent direct and indirect participating interest from Minimax Mineral Exploration Corporation in future mining reserves located in the Surigao Gold District of Northeastern Mindanao, Philippines.
This is in addition to an option on a further 7.5 percent previously acquired by MRL. If all options relating to the Surigao Projects are exercised, equity distribution on any mineral reserve delineated will be MRL 57.5 percent and Panoro Minerals Ltd. 42.5 percent. Minimax shall, effective immediately, appoint a proxy, qualified under relevant laws and acceptable at all times to MRL, to exercise the voting rights of the additional option interests (totaling 22.5 percent). These may be exercised in addition to MRL's current participating interests in the projects, which range from 10 percent to 75 percent.
Tony Climie P. Geol., president of Mindoro commented, "this agreement consolidates Mindoro's strategic interests in an outstanding project portfolio with high potential for the discovery of multiple porphyry copper-gold deposits".
Under the Option Agreement, after completion of a Bankable Feasibility Study but before commencing mining operations, MRL has the option to purchase an additional 15 percent interest from Minimax in each and any mining reserve located on the Surigao Projects. Payment shall be equivalent to 0.75 percent of the gross value of each mining reserve, to a minimum of US $7.5 million. In addition MRL shall make an initial cash payment of US $75,000, and, thereafter, make further payments of US $75,000 annually for 4 years. Beginning in year five to commencement of production, annual payments of US $125,000 will be made. Subject to regulatory approval, Mindoro shall issue 75,000 common shares to Minimax. A net smelter royalty of one percent against the additional 15 percent interest in mineral reserves shall also be payable to Minimax. MRL may, at any time, terminate the Option Agreement without penalty.
MINDORO'S SURIGAO PROJECTS -- AN OVERVIEW
Mindoro is also very active on its Batangas Projects, Luzon Island, where it is currently drilling the Pica porphyry copper-gold system. Partial results from drill hole two were announced on October 21, 2005.
All work is carried out under the supervision Tony Climie P. Geol., president of Mindoro, and a "qualified person" as defined by National Instrument 43-101.
Mindoro is a well-financed Tier 1 Issuer trading on the TSX Venture Exchange (MIO) and the Frankfurt Stock Exchange (OLM). Mindoro has been exploring the high potential magmatic arcs of the Philippines since 1997 and now holds a significant land position of more than 50,000 hectares in three well-mineralized copper-gold belts. In addition to multiple epithermal gold prospects, Mindoro has identified 19 porphyry copper-gold prospects to date. Recent drilling on the first of these has confirmed the discovery of the Pica porphyry copper-gold system on one of its Batangas Projects. With an abundance of well-defined porphyry targets, Mindoro believes the opportunity for additional discoveries is high and is pursuing an aggressive strategy of drilling multiple targets in 2005-2006.
For further information, contact:
Penny Gould, Executive Vice President
Marshall Farris, Ascenta Capital Partners Inc.
Toll Free: 1-866-684-4209
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