MANILA, PHILIPPINES–(Marketwired – May 2, 2017) – Mindoro Resources Ltd. (TSX VENTURE:MIO)(FRANKFURT:WKN 906167) (“Mindoro” or the “Company“) today announced the filing of the Company’s annual audited financial results for the year ended December 31, 2016. Highlights in this news release should be read in conjunction with the Company’s Annual Audited Financial Statements and the Management Discussion & Analysis, which are available on SEDAR at www.sedar.com. All dollar amounts are in Canadian dollars, unless otherwise stated.
Financial
Net loss of $4,959,000 in 2016 includes the Company’s proportionate share of the net income of the Company’s equity investment in AMVI amounting to $451,000, compared to a net loss of $1,633,000 in the same period of 2015.
The Company borrowed $500,000 from TVIRD pursuant to the terms of a secured promissory note on December 19, 2014. This agreement was intended as a bridge financing while negotiating for a larger financing arrangement with TVIRD and its shareholders. The note was originally due on January 31, 2015, but the term has been subsequently extended until a financing agreement is completed. The note accrues interest equal to 8% per annum and is secured by Mindoro’s interest in its wholly owned subsidiary, MRL Nickel Philippines, Inc.
In 2016, the Company received additional bridge loan of $715,000 from TVIRD, including $245,000 in the 4th quarter. As at December 31, 2016, total borrowings from TVIRD amount to $1,651,000, including accrued interest of $140,000.
At December 31, 2016, the cash balance was $93,000 and has a working capital deficit of $7,542,000, excluding warrants liabilities, compared with a cash balance of $118,000 and working capital deficit of $6,066,000, respectively, at December 31, 2015.
About Mindoro
Mindoro is a Tier 2 issuer trading on the TSX Venture Exchange (MIO) and Frankfurt Stock Exchange (WKN 906167). Mindoro has a direct and beneficial 40% interest in the Agata Mining Joint Venture and direct and beneficial 75% interest in the Agata Processing Joint Venture with an option to acquire an additional 25% interest in the Agata Processing Joint Venture. Mindoro also holds 75% interest in the Pan de Azucar Sulphur-Copper-Gold Project, Iloilo City. TVIRD has the option to earn up to 60% interest in the Agata Processing and Pan de Azucar projects by meeting the earn-in requirements outlined in the June 24, 2013 press release, which include producing a definitive feasibility study for a nickel processing facility. As of October 16, 2015, a PMRC compliant DFS was completed by Agata Processing Inc., which would result in TVIRD earning a total of 60% interest in API shares. Mindoro also holds 75% interest and an option to acquire additional 25% interest in the Tapian San Francisco Copper-Gold Project, Mindanao.
Reader Advisory
Certain information set out in this News Release constitutes forward-looking information. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “intent”, “could”, “might”, “should”, “believe”, “scheduled”, “to be”, “will be” and similar expressions. Forward-looking statements in this News Release are based upon the opinions and expectations of management of the Company as at the effective date of such statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that those expectations will prove to have been correct. Forward-looking statements are subject to certain risks and uncertainties (known and unknown) that could cause actual outcomes to differ materially from those anticipated or implied by such forward-looking statements. These factors include, but are not limited to, such things as inherent risks associated with the exploration and development of mining properties, ultimate recoverability of mineral reserves, timing, results and costs of exploration and development activities, availability of financial resources or third-party financing, new laws (domestic or foreign), changes in administrative practices, changes in exploration plans or budgets, and availability of equipment and personnel.
Accordingly, readers should not place undue reliance upon the forward-looking statements contained in this News Release and such forward-looking statements should not be interpreted or regarded as guarantees of future outcomes. Forward-looking information respecting cash flows anticipated from future production of high-iron/low nickel DSO at the Agata Mining Project, is based upon high-iron/low nickel DSO prices in effect as at the date of this News Release, management’s forecasts of trends in prices of high-iron/low nickel DSO, current mining rates of high-iron/low-nickel DSO from the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at Agata Mining Project, the current development plan for Agata Mining Project, AMVI’s current budget and overall strategy for Agata Mining Project, which plans, budget and strategy are all subject to change. Forward-looking information respecting the anticipated timing of future shipments of high-iron/low nickel DSO from the Agata Mining Project, is based upon current mining rates of high-iron/low nickel DSO from the Agata Mining Project, the terms of the third party offtake agreement for the purchase of high-iron/low nickel DSO produced at the Agata Mining Project, estimates of the size of the high-iron/low nickel DSO reserves at the Agata Mining Project, the current development plan for the Agata Mining Project, AMVI’s current budget and overall strategy for the Agata Mining Project, which plans, budget and strategy are all subject to change. The forward-looking statements of the Company contained in this News Release are expressly qualified, in their entirety, by this cautionary statement. Various risks to which the Company is exposed in the conduct of its business (including mining activities) are described in detail in the Company’s Management’s Discussion and Analysis for the year ended December 31, 2015, which was filed on SEDAR on April 29, 2016 and is available under the Company’s profile at www.sedar.com. Subject to applicable securities laws, the Company does not undertake any obligation to publicly revise the forward-looking statements included in this News Release to reflect subsequent events or circumstances.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
