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Oct 19, 2004
Mindoro Raises $2,000,000
EDMONTON, AB; Oct. 19, 2004 - Mindoro Resources Ltd. (TSX-V: MIO; Frankfurt: OLM) has announced that its offering of securities under the TSX Venture Exchange Short Form Offering Policy closed on Friday, October 15, 2004. The offering, which consisted of the sale of units at $0.225 per unit, as previously announced on July 28, 2004, was over subscribed and resulted in the issue of 8,888,888 common shares and 8,888,888 non-transferable purchase warrants. Each purchase warrant entitles the holder to purchase one common share for $0.30 for two years. A hold period which expires on February 16, 2005, applies to 2,017,889 of both the common shares and the purchase warrants. Gross proceeds from the offering were $2,000,000; with proceeds to the Mindoro of $1,790,876, net of broker commissions and costs.
Cash commissions equal to nine percent of the gross proceeds of the offering were paid to Northern Securities Inc. An additional 888,888 Agents Warrants were issued with each Agents Warrant entitling the holder to purchase one unit at $0.225 per unit at any time prior to October 15, 2006. Northern Securities also received 50,000 Mindoro shares upon closing, in addition to a previously paid $12,500 work fee. The 50,000 shares, as well as any shares issued pursuant to the exercise of the Agent Warrants, are subject to a hold period expiring on February 16, 2005.
PROCEEDS TO FUND DRILLING OF PORPHYRY COPPER-GOLD TARGETS
Proceeds of the offering will be used for general working capital and to fund an aggressive drill program on several high priority porphyry copper-gold targets on Mindoro's Lobo and Archangel Projects in the Philippines. Porphyry copper-gold systems are large tonnage, relatively low-grade, copper-gold deposits containing very large copper and gold resources, which are potentially bulk mineable. There are numerous favorable examples of porphyry copper-gold deposits occurring in the Philippines, including the RTZ/Lepanto Far Southeast deposit, and the recent Anglo/Philex Boyongan and Bayugo discoveries. In neighboring Indonesia, the Grasberg porphyry copper-gold deposit is one of the world's premier copper-gold mines.
Several porphyry copper-gold targets were identified on the Lobo Project by air and ground magnetic surveys, as described in a news release dated January 28, 2004. An induced polarization survey is currently underway with the objective of further defining and prioritizing the porphyry drill targets. Mindoro anticipates the IP survey will be completed by early November and drilling will commence shortly thereafter.
On the nearby Archangel Project, porphyry related alteration and mineralization has been intermittently exposed at surface over approximately 5km by 2km, as described in a release dated September 15, 2004. A combined magnetic and induced polarization survey is planned to commence upon completion of the Lobo geophysical survey, with the objective of selecting optimal drill targets.
Proceeds will also be used to continue drilling and evaluating Lobo's epithermal gold mineralization; as well as to expand the inferred gold-silver resource at Archangel's Kay Tanda and to further evaluate the open-pit, heap leach potential of that resource. All work on Mindoro's projects is carried out under the supervision of Tony Clime, P.Geol., who is a qualified person as defined by National Instrument 43-101, and President of Mindoro.
Mindoro is a Tier One Company trading on the TSX Venture Exchange (TSX-V: MIO) and the Frankfurt Stock Exchange (OLM). The Company is exploring for gold and gold-copper in the prolifically mineralized magmatic arcs of the Asia-Pacific Region. Mindoro has been active in the Philippines for seven years and is presently focused on six promising projects in politically stable jurisdictions of the Philippines.
For further information, contact:
Penny Gould, Executive Vice President
Phone: (1-780) 413-8187
Fax: (1-780) 426-2716
Marshall Farris, Ascenta Capital Partners Inc.
Phone: (1-604) 628-5800
Toll Free: 1-866-684-4209
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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