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Nov 22, 2011
Mindoro Arranges Private Placement to Raise up to C$4 million for Gold Program
  • Issue of up to 33.4 million Common Shares at a price of C$0.12 each and CDIs at a price of A$0.115 each
  • Primary use of funds is to advance the Lobo and Archangel gold projects at Batangas
MELBOURNE, AUSTRALIA, 22 November 2011 -- Mindoro Resources Ltd (TSXV: MIO; ASX: MDO; Frankfurt: WKN 906167) today announced it is undertaking a capital raising through the sale of up to 33,400,000 Common Shares and CDIs on a private placement basis to qualified investors at a price of C$0.12 per share in Canada and A$0.115 per CDI in Australia for gross proceeds of up to the equivalent of C$4 million ("Private Placement").

The Company has appointed DJ Carmichael Pty Ltd based in Perth, Australia and Fox-Davies Capital Ltd based in London, UK as Co-Lead Managers of the Private Placement. The Co-Lead Managers will receive a commission which is based on the gross proceeds from the Common Shares and CDIs sold by them. The Company may pay additional finder's fees as allowed by the policies of the TSX Venture Exchange.

Net proceeds of the Private Placement will be used to fund:
  • Gold resource drilling at Lobo and Archangel, Batangas
  • A development scoping study on the Batangas gold projects
  • Porphyry copper-gold target generation
  • Ongoing working capital requirements
As announced on 2 November 2011, the Company's plan is to arrange for the Agata Nickel Project two stage development strategy to be funded by a partner investment at the project level. This process has been initiated with Deloitte Corporate Finance ("Deloitte") being appointed as advisor for the transaction.

Mindoro's President and CEO Jon Dugdale commented, "Having successfully delivered on our key milestones in 2011, including the successful infill and extension drilling program at Southwest Breccia high-grade gold shoot, Lobo, we are focused on the next steps of building additional resources and completing a development scoping study on both the Lobo and Archangel resource projects at Batangas. Further, having completed our key development studies on the Agata Nickel project, we are now actively engaged with Deloitte to secure a partner to advance the two staged development strategy. "

Placement Details - Canada and Australia

The Private Placement will be offered as Common Shares in Canada and as Chess Depository Interests (CDIs) in Australia. All securities issued are subject to the regulatory four month hold period in Canada and cannot be traded on the TSX Venture Exchange or be resold in Canada during this period, unless an exemption is available from the applicable prospectus requirements in Canada. CDIs issued in Australia will be tradeable on the ASX but will not be convertible to Common Shares in Canada during the four month hold period applicable under Canadian securities regulations. The Company has implemented appropriate controls with its share registries to ensure Canadian regulatory requirements are met.

The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approval, including the approval of the TSX Venture Exchange.

An initial closing in connection with the Private Placement is expected to occur in late November or early December 2011.

Neither the Common Shares nor the CDIs have been registered in the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction where such offer, solicitation or sale would be unlawful.



For further information, please contact Jon Dugdale, President and CEO Mindoro's Melbourne office at +61 3 9614 5055.


For investor relations inquiries please email ir@mindoro.com, or telephone one of the following:

Australia:
Nathan Ryan, NWR Communications, Tel: +61420 582 887

Canada:
Jeanny So, CHF Investor Relations, Tel: +1 416 868 1079 ext. 225
Jeremy Hill, CHF Investor Relations, Tel: +1 416 868 1079 ext 238

Germany:
Robert Sarcher, Aprendo Capital, Tel: +49.821.6089051

Website: www.mindoro.com



ABOUT MINDORO

Mindoro is a Tier 1 Issuer trading on the TSX Venture Exchange (MIO), Australian Securities Exchange (MDO) and Frankfurt Stock Exchange (WKN 906167). Mindoro is focused on nickel, gold and copper-gold exploration and development in the Philippines.

Mindoro has NI 43-101 Mineral Resource estimates on its Agata Nickel Project, in the Surigao District, Mindanao, that include Measured and Indicated resource estimates totalling 42.76 million tonnes at 1.01% nickel, for 430,000 tonnes contained nickel, and Inferred resource estimates totalling 2.435 million tonnes at 0.99% nickel. In addition the Company has NI 43-101 Mineral Resource estimates on its Lobo (2005) and Archangel (2010) gold-silver projects, as well as 10 key porphyry copper-gold prospects at varying stages of advancement.

In March 2011 Mindoro released a preliminary economic assessment (PEA) on the Agata Nickel Project where the Company controls major nickel laterite resources and is drill testing regional targets. On 2 November 2011 the Company announced the results of a prefeasibility study (PFS) into an integrated on-site nickel processing project, based on the PEA, and the results of a scoping study into the development of a thermally upgraded (sintered) iron-nickel ore operation. The company already has an environmental compliance certificate (ECC) to produce up to 2 million dry metric tonnes (DMT) of laterite direct shipping ore per annum from Agata and released the preliminary economic assessment indicating a viable DSO operation in March 2011.

The drilling program at the Batangas project consists of the Southwest Breccia (SWB) high-grade epithermal gold shoot at Lobo, and recently commenced drilling at Archangel to test for gold "feeder" structures. The recently drill tested Pan de Azucar copper-gold-sulphur massive sulphide deposit remains open with depth to the southeast. A metallurgical testing program has commenced on Pan de Azucar samples examining acid producing capacity for nickel laterite processing as well as copper and gold flotation and leaching. Mindoro is also evaluating and prioritizing its many high-potential copper-gold porphyry targets prior to further drill targeting.

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 development and 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.

Mindoro's exploration programs are prepared and/or designed and carried out under the supervision of Tony Climie, P.Geo., who is a qualified person as defined by National Instrument 43-101 and is a competent person as defined by the JORC Code, and who has reviewed and verified the pertinent disclosure of exploration related technical information contained in this news release.

Boyd Willis, FAusIMM, a qualified person as defined by National Instrument 43-101, has reviewed and verified the disclosure of a development and metallurgical processing nature contained in this news release.

The Company's resource estimates were originally prepared in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101") and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian Securities Administrators that governs how Canadian issuers disclose scientific and technical information about mineral projects. All resource information is also expressed in terms of the JORC Code.

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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