Canada's Centerra plans to acquire approximately 9.9% equity interest in Mundoro for CAD 4.08 million

en.Wedoany.com Reported - On November 6, Canadian mining company Mundoro Capital announced a strategic equity investment arrangement with Centerra Gold. Under the share subscription and investor rights agreement signed by both parties, Centerra plans to subscribe for 12.374 million newly issued common shares of Mundoro through a non-brokered private placement, with a total investment of approximately CAD 4.08 million. Upon completion of the transaction, Centerra will directly or indirectly hold approximately 9.9% of Mundoro's issued common shares, with closing expected on or around November 27.

Under the subscription terms, the private placement is priced at CAD 0.33 per share, with total gross proceeds of CAD 4,083,420. Mundoro plans to use the proceeds for mineral exploration projects not subject to partnerships with other companies, as well as for general working capital requirements.

The parties also signed an investor rights agreement granting Centerra the right to participate in future equity financings of Mundoro to maintain its ownership percentage in the company. Under the transaction arrangements, Centerra will not be deemed an insider or control person under TSX Venture Exchange rules upon completion of the closing.

The private placement is subject to receipt of necessary corporate and regulatory approvals, including acceptance by the TSX Venture Exchange. The newly issued shares will be subject to a four-month-and-one-day hold period from the closing date, and the transaction does not involve any finder's fees or commissions.

Mundoro also provided an update on its exploration asset arrangements in the Timok metallogenic belt in Serbia. According to a separate announcement issued by the company on November 6, BHP will continue to retain its option on the Trstenik and South Timok projects, while Mundoro has regained full control of the Central Timok and Borsko mineral tenure projects. The related assets include 8 exploration licenses and 5 porphyry-type mineralization targets that are drill-ready.