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09-Dec-13
Mindoro Arranges Bridging Loan
EDMONTON, ALBERTA, December 09, 2013 - Mindoro Resources Ltd. (TSXV: MIO; ASX: MDO; Frankfurt: WKN 906167) is pleased to announce that it has entered into agreements with certain individuals to borrow an aggregate of up to $175,000. The loans bear interest of 15% per annum, payable quarterly, and the aggregate principal amount of the loans will be payable two years from the date of the advance. The loans may be prepaid, at any time without premium or penalty, with the consent of both the Company and the lenders. The Company intends to repay the principal amount of the loans and the interest from funds that become available from operations or any subsequent debt or equity financings. The proceeds of the loans will be used for general working capital.
In accordance with the policies of the TSX Venture Exchange, lenders will receive Bonus Shares comprised of 100,000 common shares per $25,000 principal amount loaned. The Company issued 500,000 common shares on December 9, 2013, upon receipt of $125,000 from arms-length lenders. The Company also received $25,000 from a director of the Company, as described below, for aggregate funds received of $150,000. The Company anticipates receiving an additional $25,000 within 21 days from another arms-length lender and issuing an additional 100,000 common shares.
One of the lenders, Rob Garden, is also a director of the Company. As required by the listing rules of the Australian Securities Exchange, the Company intends to seek shareholder approval to issue 100,000 Bonus Shares to Mr. Garden. A date has not yet been set for a shareholders' meeting and the Bonus Shares will only be issued to Mr. Garden upon receipt of shareholder approval. In the event the Company does not receive shareholder approval, the Company will immediately repay the funds borrowed from Mr. Garden.
The Company will issue a press release promptly disclosing the additional issues of Bonus Shares when they occur. All Bonus Shares are subject to a four month hold period from the date of issue.
On behalf of the Board of Directors,
Tony Climie
CEO
For investor relations inquiries, please email ir@mindoro.com, or telephone one of the following:
Australia: Clayton Northey: +61 3 9028 8187
Canada: Penny Gould: +780.719.8895, or
Jeanny So, CHF Investor Relations: +1 416 868 1079 ext. 225
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 has a 75% interest and an option to acquire the remaining 25% in the Agata Nickel Project, Mindanao, and the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo. TVI Pacific Inc. has the option to earn up to a 60% interest in these projects by meeting the earn-in requirements outlined in the June 24, 2013, release. Mindoro also holds a 20.8% stake in ASX listed Red Mountain Mining (ASX: RMX), which has a 100% direct and indirect interest in the Batangas gold and copper-gold projects.
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.
Tony Climie P.Geol., is the CEO of Mindoro Resources Ltd and has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a qualified person as defined by National Instrument 43-101. Tony Climie consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.
This release may contain forward-looking statements including the expected receipt and timing of the additional loan from another arms-length lender, the expected source of the funds to repay the loans, 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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