Canada-based minerals exploration company Mundoro Capital has announced the successful completion of a $1 million private placement financing aimed at funding copper-gold exploration projects in Serbia and Bulgaria.
In order to minimize dilution to existing shareholders, the company had chosen not to increase the size of its share offering even though the offering had been oversubscribed, Mundoro said in a filing to the Toronto Stock Exchange late on Thursday.
The company issued 8,333,333 units at $0.12 per unit. Each unit comprises one common share of the company and half of one share purchase warrant.
Each whole share purchase warrant is exercisable into one common share at a price of $0.20 per share for a period of two years following the closing of the offering.
Mundoro said earlier it planned to use the proceeds of the offering for the exploration of its wholly-owned South Timok projects in Serbia, which include three drill ready project areas – Skoursa copper-gold porphyry, Tilva Rosh epithermal system and Markov Kamen copper-gold epithermal system. The proceeds will also fund the exploration at Rhodopean projects in southeastern Bulgaria, where Mundoro has two drill ready project areas – the Chuka copper-gold porphyry target and the AV sediment hosted epithermal gold target.
In June, Mundoro announced the start of a drilling programme, which is fully funded by the company’s joint venture partner JOGMEC, on two of the JOGMEC optioned properties – Dubrava and Zeleznik in Serbia. The drilling is expected to be completed around the end of September with results to be announced in the last quarter of 2016.
Mundoro Capital focuses on mineral acquisition, exploration and development. Its target areas are the Tethyan Belt in southeast Europe and the Mesa Central Belt in Mexico.