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Dechev. In all of the agreements Mundoro
is the initial project operator which means
the company collects operator fees which
help counterbalance the company's annual
corporate expenses.
Convinced of the benefits, Mundoro
entered into a second earn-in arrangement
with Freeport-McMoRan in July 2018
on its Savinac and Bacevica exploration
licenses, two of the four licenses that make
up the 520-km
2
of properties in the Timok
Magmatic Complex.
This earn-in arrangement provides
Freeport-McMoRan the option to earn up
to 75% of the project after completing US
$45 million in exploration over two phases.
The first phase calls for US $5 million in
exploration expenditures over three years
resulting in a 51% interest and a Phase
Two exploration program that would
result in an additional 24% interest after
funding US $40 million over five years.
In October 2019, Mundoro announced
its third earn-in arrangement with Vale
in which Vale has an option to earn-in on
four of Mundoro's exploration Licenses:
Sumrakovac, Osnic, Dubrava and Padina
– all located within the Timok Magmatic
Complex in Serbia.
Mundoro has granted to Vale an option
to earn, over two primary phases, up to a
75% interest in the projects by sole fund-
ing expenditures of up to US $45 million
over two phases. Vale can earn 51% inter-
est in the projects by sole-funding US $5
million in expenditures over three years
and Mundoro will be the operator of the
projects in the first phase.
Following Phase One, Vale can enter
Phase Two, where it can earn an additional
24% interest in the projects by sole-fund-
ing another US $40 million in expenditures
by the fifth anniversary of the election date.
"Our partnerships with the miners are
a proven business model beneficial to both
the partners and Mundoro and thereby
good news for our shareholders. We wel-
come more partners and believe these kinds
of partnerships highlight a good model for
the miners and Mundoro to collaborate
together for exploration success in this
emerging region." says Dechev.
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