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Mundoro Capital Inc options out Saje project in Bulgaria to private firm

Last updated: 05:46 10 May 2018 AEST, First published: 00:46 10 May 2018 AEST

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Saje is a lead-zinc deposit in southeastern Bulgaria

Mundoro Capital Inc (CVE:MUN) has struck an option deal with a private group on one of its exploration projects - the Saje lead-zinc deposit in the Zvezda licence in southeastern Bulgaria.

Under the terms, the firm must drill a minimum of 1,000 meters on the project and afterwards, it will have one month to provide written notice to enter into an agreement with Mundoro.

If an agreement is entered, the private firm will pay to Mundoro annual advance royalty payments in January of each calendar year until commercial production.

Mundoro will retain a 2% net smelter returns (NSR) royalty on any metals production.

The Saje deposit is a brownfield area that was initially explored starting in the 1960s and exploited by a government run company from 1984 to 1992 for lead and zinc with by-products of copper and silver.

It lies in the western part of the Spahievo ore field at the eastern border of a rhyolite caldera and comprises structurally controlled alteration zones, some of which are the main ore bearing zones.

"We are delighted to have signed this agreement with a new partner in the region," said Teo Dechev, the chief executive and president of Mundoro.

"Mundoro is achieving our corporate strategy to work with partners on select projects within our portfolio while retaining 100% ownership over a core portion of our portfolio.

"Realising value from our existing portfolio of over 10 licenses with multiple targets on various license is a key focus for the company."

Also in today's release, Mundoro revealed it had ended the first quarter of 2018 with around C$4.7mln in the treasury with the Timok North Projects optioned to JOGMEC.

Its Timok south projects - the largest contiguous exploration area in the Timok district - is  available for joint venture and Mundoro is having ongoing discussions regarding the Savinac, Sumrakovac, Bacevica and Osnic licences.

It noted that although there are ongoing discussions, the company cannot be assured that a transaction will be concluded as a result.

Mundoro shares stand at C$0.11 in Toronto.

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