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Mindoro Resources

Mindoro Resources closes two concurrent financings in Australia and Canada, raises $10.6m

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Phillippines-focused Mindoro Resources (TSX-V:MIO) (FRANKFURT:WKN 906167) said Friday it has closed two financings in Australia and Canada for total proceeds of $10.6 million.

The first offering in Australia, which was oversubscribed, consisted of the sale of 40 million chess depository interests (CDIs), issued at a price of A$0.20 each, for proceeds of A$8.0 million.

Mindoro said it received conditional approval from the ASX to list the CDIs on the Australian Exchange, which will begin trading around December 7 under the symbol "MDO", subject to approvals. Each CDI will be equivalent to and exchangeable for one common share in the company, it added.

Institutional shareholders Lion Selection Group, Asian Lion and Acorn Capital-managed Microcap Investment Trusts invested a total A$3.0 million, while Mindoro insiders invested a total of A$310,000 through the offering. Mindoro said Lion Selection Group also exercised four million warrants, raising an additional C$600,000.

The second financing consisted of a private placement through the issue of 10 million shares to the IFC, a member of the World Bank Group, for proceeds of C$2.0 million.

The company said the new funds will be used to advance pre-feasibility and feasibility studies for a nickel processing operation at its Agata Project in the Phillippines, and to further increase the nickel resource base through drilling of the regional exploration target. Proceeds will also be used  to advance Mindoro's portfolio of gold and copper-gold projects.

At Agata, it is estimated that its NI 43-101 resource estimate totals Measured and Indicated resouces of 32.6 million dry metric tonnes (DMT) at 1.04% Nickel and 0.05% Cobalt, and Inferred 1.68 million DMT at 1.04% Nickel, 0.04% Cobalt.

The company has also identified 22 porphyry copper-gold prospects and has three projects in the Batangas area of southern Luzon, which are the subject of a farm-in arrangement, whereby Gold Fields can earn a 75% interest through direct project expenditure.

In addition, Mindoro controls major nickel laterite resouces in the Suriago District, Mindanao, where the company is assessing the potential to develop a direct shipping ore operation.

IFC is the largest development institution focused on the private sector in developing countries. Its new investments climbed to a record $18 billion in fiscal 2010.

Quick facts: Mindoro Resources

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