Eastern European copper/gold explorer Mundoro Capital (MUN on the TSX-V in Canada) is my newest speculation that I just HAD to share with the CEO.CA community! I have created a ~22 minute Youtube video (*click the image above to access the video*), as well as supporting 'notes' in the article below. Please keep in mind that this is educational, and meant to jumpstart a discussion as well as your own due diligence (DD) on the company.

Mundoro currently has 43,786,776 shares outstanding and a recent 0.175 CAD share price, for a market capitalization of roughly $7.7 million CAD. While there is a private placement in progress (mentioned in both the Youtube video and article), there are currently 47,131,776 shares fully diluted, and can be verified here.

*UPDATE, August 18th 2016 - Here is an EXCELLENT 'powerpoint viewer presentation' that was just added to the website. I HIGHLY recommend you go through this presentation for many additional details on Mundoro. 


Video Notes & Links

1 minute 35 seconds - The Mundoro Room at CEO.CA. Most importantly, there is very little activity here compared to similar company rooms at CEO.CA. This is a great signal that a stock could be under-followed, and perhaps undervalued!

2 minutes 45 seconds - The Q1 2016 Balance Sheet was pulled from SEDAR. If you are not familiar with SEDAR, go take a look! The site badly needs a make-over. But it's valuable for financial history and company activities.

4 minutes 45 seconds - Company news history is well organized on the website, going back to early 2012, when company strategy began to focus on Eastern Europe. You will learn A LOT about a company if you go through these one by one, as I did over the past 2 weeks for Mundoro. It can be tedious, but sometimes you will find some great details that no one else is aware of.

5 minutes 5 seconds - On March 7th, 2016, Mundoro Signs Agreement with JOGMEC. You can learn more about JOGMEC here. Examples of other strong deals signed by JOGMEC include Arena Minerals and the Platreef Project with Ivanhoe Mines.

8 minutes 35 seconds - On July 5th, 2016, Mundoro commences a 3000m drill program, fully funded by JOGMEC. Helpful supporting images are here and here and here.

9 minutes 40 seconds - On August 2nd, 2016, Mundoro options a 4th project to JOGMEC

11 minutes 5 seconds - On December 7th, 2015, Mundoro reported results from 5369m of drilling by First Quantum Minerals. A helpful supporting image is here. I believe this drilling was far more positive than perceived by the market (as described in the Youtube video). And I also like that Mundoro has some drilling fully funded by JOGMEC, and some drilling fully funded by Mundoro (including the upcoming 2nd pass drilling on these properties). There is a reasonable chance that First Quantum's drilling in 2015 will help Mundoro make further discoveries in 2016 on these "Southern Timok Properties".

13 minutes 0 seconds - Mundoro's key properties are part of the Tethyan Belt, that stretches from Eastern Europe to Central Asia. Two of the best discoveries in the world occurred in this belt within the last 5 year: Cukaru Peki by Reservoir Minerals in Serbia, and Hot Maden by Mariana Resources in Turkey. Mundoro has key properties surrounding Cukaru Peki, and additional prospective properties in Bulgaria. It's possible that these are the 2 best jurisdictions for exploration in the Tethyan Belt right now.

14 minutes 0 seconds - This great Northern Miner article from last week provides instant credibility to Bulgaria as an emerging mining jurisdiction. Mundoro plans to drill 2 targets in Bulgaria along with 3 targets in Serbia, for a total of 5 targets by the end of 2016, all for $1M CAD. These are 100% owned targets, and the drilling is IN ADDITION to the drilling being fully funded by JOGMEC described earlier.

15 minutes 30 seconds - Big name companies with interests in Serbia & Bulgaria include:

Nevsun Resources - they acquired Reservoir Minerals earlier this. Both can be searched at CEO.CA using $NSU & $RMC

Freeport-McMoRan - Reservoir Minerals partner for their discovery. Can be searched using $FCX

Rio Tinto - has multiple JVs in Serbia. Can be searched using $RIO.L

Dundee Precious Metals - an emerging mid-tier, with key properties in both Serbia & Bulgaria, just like Mundoro. They fully acquired Avala earlier this year, which focused on exploration in Serbia. Can be searched using $DPM and $AVZ

*Importantly, Mundoro is the ONLY true junior explorer left in the Timok district, and has an EXCELLENT land position, surrounding key mines & discoveries. This can not be emphasized enough, as the market has ignored their progress here for years.

This is why I believe it is not a stretch to compare Mundoro directly to Independence Gold ( $IGO at CEO.CA ) in the Yukon. Further details are provided in the Youtube video.

17 minutes 20 seconds - Some negatives described. 

Mundoro is raising $1M CAD at 0.12 CAD with half-warrants at 0.20 CAD. This money will go directly into 100% owned property drilling, which is great. But I believe Mundoro would have been fine to raise money AFTER drill results in early 2017, at a much higher price. 

Still, the dilution does not seem excessive. If this private placement remains at $1M CAD for 8,333,333 shares, Mundoro will then have a total of 52,120,109 shares outstanding, which is still a relatively tight share structure. And to my understanding, these additional shares would NOT be free-trading until AFTER JOGMEC drilling results come in. So there's still a great chance the stock price could spike up in the short-term based on very positive drilling results.

In addition, management/director ownership should be clearer. I believe in total it is roughly ~7-8%. In my opinion, 5%+ is good, but I would prefer 10%+. You can explore this for yourself at SEDI. But I recommend talking directly to Teo Dechev at Mundoro to get more details on company share structure and management/director ownership.

*UPDATE, September 13th 2016 - Some positives and negatives that are intertwined:

  • I was wrong about management/director ownership at ~7-8%. This is my error, and I now believe ownership is significantly lower. However, I have not had a chance to call Teo to really nail down this number (to cross-reference with SEDI). This may take a bit of time, as the company is presenting at the Precious Metals Summit this week, and other events in coming weeks. But for now, I will emphasize that I believe this is the company's biggest weakness, as I always prefer 10%+ ownership.
  • September 8th 2016 News Release - Mundoro Announces Closing of Private Placement
    • This is almost entirely positive news. This capital raise is in line with my original expectations. It is minimally dilutive. Mundoro maintains a relatively tight share structure and JOGMEC drilling results will certainly come in BEFORE the new shares are free-trading. This means that if Mundoro hits something really good within the next few months, the share price should fly! (at least from the current level of 0.155 CAD)
    • And an unexpected positive is that Sprott Global Resource Investments seems to have taken up most (if not all) of the raise! "The Company paid a finder’s fee of 5% cash to Sprott Global Resource Investments, Ltd., for a total fee of $45,000, in respect of subscriptions from investors introduced by them as finders." Some clarity is needed here (I am assuming the shares were taken up internally and could be wrong). But I believe this is an important new 'partner' for Mundoro, which really should improve liquidity and interest in the company. 
    • While this was an opportunity for management to increase their ownership stake, I am personally fine with their reasoning: "In order to minimize dilution to existing shareholders, the Company chose not to increase the size of the Offering even though the Offering was oversubscribed. The Company restricted insiders from participating in order to allocate Units only to new and existing shareholders." HOWEVER, I believe management/director ownership is the biggest weakness, and perception by retail investors on this is negative. I am hoping that management/directors can take a big chunk of the next private placement at a higher price (and possibly buy on the market as well). This could immediately solve the weakness, and would continue to be minimally dilutive. 
  • The Precious Metals Summit begins tomorrow (Wednesday Sept. 14th) and a live webcast of Mundoro's presentation can be accessed here, expected to start at 1:30pm Pacific Time. This presentation should be archived for later viewing as well. I look forward to this presentation, and will provide further updates as new information becomes available.

19 minutes 0 seconds - I provide some price targets for where I believe Mundoro should be trading right now in the Youtube video. Importantly, I believe the higher the price goes, the more due diligence (DD) is required before considering buying shares. I am still learning more about the company every day. But at a ~10M CAD market cap or below, I believe the information provided here is more than enough to confirm Mundoro is significantly undervalued.

20 minutes 30 seconds - I HIGHLY recommend you immediately continue your own DD/research by watching Youtube presentations by Teo Dechev. This is the most recent (and my favorite) from April 2016. If you like what you see after studying these video presentations and previous news releases, then I think it's a great time to call Teo yourself and learn more. Don't trust what I say here-- there could be many errors in this presentation! Verify for yourself :)

All errors are my own and will be corrected as needed. Please discuss below! If you have private questions or comments, please email me at: miningbookguy@gmail.com

*DISCLOSURE: MiningBookGuy owns shares in Mundoro Capital (MUN on the TSX-V in Canada) and much of the information is biased. MiningBookGuy does not have any relationship with the company, and may buy or sell shares at any time in the future. MiningBookGuy is not a registered investment advisor and advises you to do your own due diligence (DYODD) with a licensed investment advisor prior to making any investment decisions. This company is highly speculative and not suitable for all investors.

This video/article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.