Mundoro Capital Inc.

Condensed Interim Consolidated Financial Statements

For the Three-Month Periods Ended March 31, 2024 and 2023

MUNDORO CAPITAL INC. Three-MonthPeriods Ended March 31, 2024 and 2023 (Unaudited Expressed in Canadian Dollars)

CONSOLIDATED BALANCE SHEETS

As at

March 31, 2024

December 31, 2023

Note

ASSETS

Current assets

Cash and cash equivalents

$

3,610,283

$

6,479,508

Amounts receivable from partners

3

1,407,967

292,773

Amounts receivable

4

296,286

394,179

Prepaid expenses

580,233

387,432

5,894,769

7,553,892

Non-current assets

Deposits

5

215,480

212,058

Investments

6

149,661

166,638

Equipment and vehicles

7

478,248

410,016

Mineral interests

8

58,289

54,321

901,678

843,033

TOTAL ASSETS

$

6,796,447

$

8,396,925

LIABILITIES

Current liabilities

Accounts payable and accrued liabilities

10, 12

$

1,649,470

$

2,469,543

Advances from partners

3

536,810

1,662,195

TOTAL LIABILITIES

2,186,280

4,131,738

EQUITY

Share capital

11

54,022,118

54,022,118

Contributed surplus

9,094,652

9,094,652

Stock options reserve

1,789,165

1,757,490

Accumulated other comprehensive income

(79,715)

43,245

Deficit

(60,216,053)

(60,652,318)

TOTAL EQUITY

4,610,167

4,265,187

TOTAL EQUITY AND LIABILITIES

$

6,796,447

$

8,396,925

The accompanying notes are an integral part of these unaudited condensed interim financial statements

Signed on behalf of the Board of Directors

/s/ Michael Calyniuk, Director

/s/ Teodora Dechev, Director

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MUNDORO CAPITAL INC. Three-MonthPeriod Ended March 31, 2024 and 2023 (Unaudited Expressed in Canadian Dollars)

CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)

For the three months ended

Note

March 31, 2024

March 31, 2023

Fees earned

Fees earned and net option payments received

3

774,855

834,225

Interest and other income

16,102

1,347

790,957

835,572

Exploration and project evaluation

9

$

(2,637,541)

$

(1,686,880)

Less: recoveries

2,584,073

1,549,658

(53,468)

(137,222)

Corporate Expenses

Corporate governance

(93,270)

(124,744)

General and administrative

(33,733)

(44,429)

Accounting and audit

(71,667)

(80,457)

Corporate communication

(68,852)

(91,569)

(267,522)

(341,199)

INCOME/(LOSS) BEFORE OTHER EXPENSES

469,967

357,152

OTHER INCOME (EXPENSES)

Share-based payments

(31,675)

(49,338)

Depreciation

7

(31,537)

(9,938)

Increase (decrease) in fair value of investments

6

(27,427)

22,183

Foreign exchange gain (loss)

101,937

1,689

11,298

(35,404)

NET INCOME (LOSS) FOR THE PERIOD BEFORE TAX

$

481,265

$

321,748

Income tax expense

(45,000)

-

NET INCOME (LOSS) FOR THE PERIOD AFTER TAX

$

436,265

$

321,748

OTHER COMPREHENSIVE INCOME (LOSS) WHICH MAY BE

RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT

PERIODS

Foreign currency translation differences from foreign operations

(122,960)

(27,162)

COMPREHENSIVE INCOME (LOSS) FOR THE PERIOD

$

313,305

$

294,586

BASIC AND DILUTED INCOME (LOSS) PER SHARE

$

0.00

$

0.00

The accompanying notes are an integral part of these unaudited condensed interim financial statements

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MUNDORO CAPITAL INC. Three-MonthPeriod Ended March 31, 2024 and 2023 (Unaudited Expressed in Canadian Dollars)

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three months ended

Note

March 31, 2024

March 31, 2023

Cash flows Provided by Operating Activities

Net income (loss) for the period

$

436,265

321,748

Adjustments for items not affecting cash:

Depreciation

31,537

9,938

Share-based payments

31,675

49,338

Change in fair value of investments

6

27,427

(22,183)

Unrealized foreign exchange (gain) loss

(101,937)

(1,689)

424,967

357,152

Net change in non-cash working capital balances related to

operations:

Amounts receivable

3

97,893

(81,506)

Amounts receivable from partners

3

(1,115,194)

(1,081,428)

Prepaid expenses

(192,801)

(85,824)

Deposits

5

-

249,103

Accounts payable and accrued liabilities

(820,075)

237,292

Advances from partners

3

(1,125,385)

3,134,892

Net cash flows provided by (used in) operating activities

(2,730,595)

2,729,681

Cash flows Provided by Financing Activities

Issuance of common shares for cash, stock option exercise

-

-

Payment of government loans

-

-

Net cash flows provided by (used in) financing activities

-

-

Cash flows Provided by Investing Activities

Expenditures on mineral interests

(4,109)

(6,115)

Option payments received

3

-

-

Security deposit for mineral interest exploration

(3,422)

-

Purchase of equipment

(98,117)

(260,195)

Proceeds from disposition of assets

-

-

Net cash flows provided by (used in) investing activities

(105,648)

(266,311)

Effects of exchange rate changes on cash and cash equivalents

(32,982)

(17,203)

Net increase (decrease) in cash and cash equivalents

(2,869,225)

2,446,168

Cash and cash equivalents, beginning of period

6,479,508

4,843,844

Cash and cash equivalents, end of period

3,610,283

7,290,012

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

MUNDORO CAPITAL INC. Three-MonthPeriod Ended March 31, 2024 and 2023 (Unaudited Expressed in Canadian Dollars)

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

Share capital

Reserves

Accum. Other

Number of

Contributed

Stock options

Comprehensive

shares

Amount

Surplus

reserve

Income and loss

Deficit

Total

Balance at December 31, 2022

103,805,556

$

53,894,547

$

9,094,652

$

1,676,780

$

82,870

$

(61,862,078)

$

2,886,771

Common Shares issued for cash-stock

679,124

127,571

-

(93,581)

-

-

33,990

option

Share-based payments (Note 12 (b))

-

-

-

174,291

-

-

174,291

Net comprehensive income (loss) for

-

-

-

-

(39,625)

1,209,760

1,170,135

the period

Balance at December 31, 2023

104,484,680

$

54,022,118

$

9,094,652

$

1,757,490

$

43,245

$

(60,652,318)

$

4,265,187

Balance at December 31, 2023

104,484,680

$

54,022,118

$

9,094,652

$

1,757,490

$

43,245

$

(60,652,318)

$

4,265,187

Common Shares issued for cash-stock

-

-

-

-

-

-

-

option

Share-based payments (Note 12 (b))

-

-

-

31,675

-

-

31,675

Net comprehensive income (loss) for

-

-

-

-

(122,960)

436,265

313,305

the period

Balance at March 31, 2024

104,484,680

$

54,022,118

$

9,094,652

$

1,789,165

$

(79,715)

$

(60,216,053)

$

4,610,167

The accompanying notes are an integral part of these unaudited condensed interim financial statements.

MUNDORO CAPITAL INC.

Three-Month Period Ended March 31, 2024 and 2023

(Unaudited Expressed in Canadian Dollars)

)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 1. NATURE OF OPERATIONS

Mundoro Capital Inc. ("Company", "MCI", and "Mundoro") was incorporated on March 6, 2008 under the Business Corporations Act of the Province of British Columbia and is a Canadian based mineral acquisition, exploration and development company (see discussion under "Summary of Activities"). The Company's common stock is quoted on the TSX Venture Exchange ("TSXV") under the symbol MUN. The Company's head office and principal address is 14th floor - 1040 West Georgia Street, Vancouver, British Columbia, Canada V6E 4H1. The business of exploration and development involves a high degree of risk and there can be no assurance that current exploration and development programs will result in discovery or future profitable operations.

These condensed interim unaudited consolidated financial statements are authorized for issue by the Board of Directors on May 28, 2024

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND BASIS OF PREPARATION

Statement of compliance with International Financial Reporting Standards

These unaudited condensed interim consolidated financial statements of the Company have been prepared in accordance with International Accounting Standard 34 - Interim Financial Reporting ("IAS 34") as issued by the International Accounting Standards Board ("IASB") and interpretations of the International Financial Reporting Interpretations Committee ("IFRIC"). This interim financial report does not include all of the information required of a full annual financial report and is intended to provide users with an update in relation to events and transactions that are significant to an understanding of the changes in financial position and performance of the Company since the end of the last annual reporting period. It is therefore recommended that this financial report be read in conjunction with the annual financial statements of the Company for the year ended December 31, 2023. The accounting policies applied by the Company in these financial statements are consistent with those of the previous financial years.

Basis of preparation

These unaudited condensed interim consolidated financial statements have been prepared on a historical cost basis except for the Company's investments which are recognized at fair value. In addition, these unaudited condensed interim consolidated financial statements have been prepared using the accrual basis of accounting, except for cash flow information.

Management judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with IFRS requires management to use judgment in applying its accounting policies and estimates and assumptions about the future. Estimates and other judgments are regularly evaluated and are based on management's experience and other factors including expectations about future events that are believed to be reasonable under the circumstances. Judgment is required in assessing whether certain factors would be considered an indicator of impairment. Both internal and external information are considered to determine whether there is an indicator of impairment present and therefore, whether impairment testing is required.

3. THIRD PARTY FUNDED EXPLORATION PROGRAMS

Amounts received from third parties earning into a license(s) are netted firstly against the capitalized exploration expenditures on the applicable licenses and thereafter are recognized in the Company's Consolidated Statement of Income/(Loss). Any advances received for budgeted exploration work program expenditures, or any reimbursable funds expended by the Company are recognized separately in the balance sheet. Fees earned include operator fees earned as the designated operator of the projects and option fees earned for maintaining options in good standing in excess of capitalized exploration expenditures, all of which are recognized in the Company's Consolidated Statement of Income/(Loss).

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MUNDORO CAPITAL INC.

Three-Month Period Ended March 31, 2024 and 2023

(Unaudited Expressed in Canadian Dollars)

)

Where Mundoro is contractually entitled to Cash Call Deposits in respect of a future budgeted exploration work program period, those amounts are included in Amounts Receivable from Partners. The balance of this account at March 31, 2024 was $1,407,967 (December 31, 2023 - $292,773).

When Mundoro cash calls a partner in advance of the budgeted exploration work program being performed, the funds are shown as Advances from Partners. The balance of this account at March 31, 2024 was $536,810 (December 31, 2023 - $1,662,195). These funds are required to be used for exploration expenditures for partner programs.

4.

AMOUNTS RECEIVABLE

March 31, 2024

December 31, 2023

VAT/GST receivable

$

285,836

$

360,279

Other receivables

10,450

33,900

$

296,286

$

394,179

5.

DEPOSITS

Deposits include deposits made to governments as required by local laws. The balance at March 31, 2024 was $215,480 (December 31, 2023 - $212,058).

6. INVESTMENTS

In 2013, the Company, through a 100%-owned subsidiary, acquired at a cost of $280,853, a 2.9% equity interest in Galenit AD, a privately held gold producing company in Bulgaria. As at March 31, 2024, the fair value of such equity investment was estimated to be $139,211(December 31, 2023 - $166,638), resulting in a decrease in fair value of this investment of $27,427in the Company's statement of income and loss. The Company also has an investment certificate in the amount of $10,450 to secure company credit cards.

7. PROPERTY, PLANT AND EQUIPMENT

Cost

Office equipment

Field equipment

Total

As at December 31, 2022

$

118,877

$

384,935

$

503,812

Additions

-

346,455

346,455

Disposals

Effect of movements in exchange rates

464

1,770

2,234

As at December 31, 2023

$

119,341

$

733,160

$

852,501

Additions

-

98,117

98,117

Disposals

(11,822)

(11,822)

Effect of movements in exchange rates

-

(363)

(363)

As at March 31, 2024

$

119,341

$

819,092

$

938,433

Accumulated depreciation

As at December 31, 2022

$

(72,217)

$

(279,607)

$

(351,824)

Depreciation for the year

(10,601)

(72,331)

(82,932)

Disposal

Effect of movements in exchange rates

(167)

(7,562)

(7,729)

As at December 31, 2023

$

(82,985)

$

(359,500)

$

(442,485)

Depreciation for the period

(2,388)

(29,149)

(31,537)

Disposals

11,822

11,822

Effect of movements in exchange rates

38

1,977

2,015

As at March 31, 2024

$

(85,335)

$

(374,851)

$

(460,185)

Net book amount

As at December 31, 2023

$

36,356

$

373,660

$

410,016

As at March 31, 2024

$

34,006

$

456,063

$

478,248

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MUNDORO CAPITAL INC.

Three-Month Period Ended March 31, 2024 and 2023

(Unaudited Expressed in Canadian Dollars)

)

8. MINERAL INTERESTS

Details of the Company's exploration and evaluation assets, including acquisition costs related to its projects, are as follows:

Europe

North America

Total

Balance at December 31, 2022

$

76,136

$

16,851

92,987

Acquisition costs

14,314

-

14,314

Write-down and adjustments

(4,815)

(6,697)

(11,512)

Allocation of option payments

(42,730)

-

(42,730)

Effect of movements in exchange rates

525

736

1,261

Balance at December 31, 2023

$

43,431

$

10,890

$

54,321

Acquisition costs

4,109

-

4,109

Write-down and adjustments

-

-

-

Allocation of option payments

-

-

-

Effect of movements in exchange rates

(141)

-

(141)

Balance at March 31, 2024

$

47,399

$

10,890

$

58,289

During the period, the Company wrote down $nil (2023 - $11,512) in mineral interests due to the declines in value.

Serbian Properties

The Company holds through its Serbian subsidiaries, the following 100%-owned exploration licenses: Crvena Zemlja, Padina, Odej, Bobot, Odej South, Gramada, Oblez, Skorusa, Branik, Kotlenik (GT7), Ponor, Vitanovac, Trstenik and Lipovica. These licenses are located in Northeastern Serbia and Central Serbia.

BHP-Mundoro Projects

In Q1-2023, Mundoro announced the Company entered into an agreement with BHP Group Limited ("BHP") whereby BHP can earn-in to five (5) of the Company's properties and three exploration areas under application in Serbia. Each of the three Options provides BHP with the right to earn a 100% interest in the relevant Timok Property by making (i) annual cash payments and operator payments ("Payments") to Mundoro, with the aggregate amount of Payments for the three properties ov er three years amounting to approximately US$1,700,020, and (ii) incurring exploration expenditures within three years on the three properties amounting to US$7,500,000. BHP may exercise each Option independently or elect to extend each Option by one year by making additional Payments and incurring additional exploration expenditures. Upon exercise of each Option, Mundoro will retain a 2% net smelter return ("NSR") royalty that includes development milestone payments for a total up to US$9,000,000 and annual cash payments until commercial production commences. Mundoro is appointed as the initial operator under the Options.

Kinross-Mundoro Project

In Q3-2022, Mundoro entered into a Option Agreement with Kinross Gold Corporation ("Kinross") setting out the commercial terms for Kinross to earn-in 100% ("Option") of Mundoro's 100% owned exploration property identified as GT7 ("GT7 Property") in Serbia. Kinross can earn-in a 100% interest in the GT7 Property by completing US$6,000,000 of exploration expenditures over 5 years with a firm commitment of US$1,500,000 exploration expenditures in the first 18 months. This commitment was not met. The agreement was terminated in March 2024.

Vale-Mundoro Projects

Mundoro and Vale had an option agreement between 2018 and 2024, granting Vale an earn-in option on four exploration licenses, Skorusa, Oblez, Branik and Padina located within the Timok Magmatic Complex. Until April 2024, exploration activity under the option agreement was sole-funded by Vale. This Option Agreement was terminated in April 2024. These project areas are held 100% by Mundoro and are available for new partnerships.

Mundoro and Vale had an option agreement between 2020 and 2024, granting Vale an earn-in option for the exploration licenses, Odej, Bobot, Odej South, Oblez, and Gramada, all located within the Timok Magmatic Complex in northeastern Serbia.

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MUNDORO CAPITAL INC.

Three-Month Period Ended March 31, 2024 and 2023

(Unaudited Expressed in Canadian Dollars)

)

Until April 2024, exploration activity under the earn-in agreement was sole-funded by Vale. The Earn-in Agreement was terminated in April 2024. These project areas are held 100% by Mundoro and are available for new partnerships.

Bulgarian Properties

JOGMEC-Mundoro Projects

In Q1 2019, Mundoro entered into a Generative Program Agreement ("Generative Agreement") in the Republic of Bulgaria ("Bulgaria") with Japan Oil, Gas and Metals National Corporation ("JOGMEC"). JOGMEC has designated a few properties as Designated Projects to proceed to the next stage of the Generative Agreement ("JOGMEC Designated Project"). Mundoro has a number of applications at the Bulgarian Ministry of Energy ("BMoE") for areas of exploration that are the selected JOGMEC Designated Projects. In Q4-2021, a contract was signed with the BMoE for one of the JOGMEC Designated Projects located in western Bulgaria, the "EE1 Project". Mundoro and JOGMEC entered into an Earn-In and Joint Venture Agreement on March 17, 2022 (EI and JV Agreement) for the exploration of the EE1 project. The EI and JV Agreement provides a stage one earn-in option granted to JOGMEC for a 51% interest following contributions of certain expenses. JOGMEC has completed the stage one earn- in. The stage two additional earn-in option allows JOGMEC to acquire an additional 24%, for a total of 75% interest in the EE1 project by completing a Preliminary Economic Assessment over six years from May 1, 2022. On the completion of stage two, JOGMEC will have the right to purchase an additional 5% interest from Mundoro for a total interest in the EE1 project of 80%. Mundoro would then be free carried to Commercial Production.

Mundoro Projects

In September 2017, the Company's local subsidiary in Bulgaria was announced as the winner of the Svoboda tender process. Certain legal and administrative procedures must be completed in order for an exploration contract to be entered into between the Company's subsidiary and the BMoE. The Company has submitted a number of applications to the BMoE and continues to coordinate with the responsible Ministries in order to advance its applications.

USA Properties

In Q4-2021, the Company and Vale established a generative alliance focused on generation of new projects with high potential to host porphyry copper and related metal deposits within Arizona and New Mexico. The target generation produced three Designated Projects of which one, the Picacho Project, was elevated to an option agreement before the alliance was terminated in April 2024.

Mundoro and Vale had an option agreement between 2021 and 2024, granting Vale an earn-in option for the Dos Cabezas project, a copper focused property in Arizona. Until April 2024, exploration activity under the option agreement was sole-funded by Vale. This Option Agreement was terminated in April 2024. The Dos Cabezas Project is held 100% by Mundoro and is available for new partnerships.

Mundoro and Vale had an option agreement between 2022 and 2024, granting Vale an earn-in option for the Picacho project, a copper focused property in Arizona. Until April 2024, exploration activity under the option agreement was sole-funded by Vale. This Option Agreement was terminated in April 2024. The Picacho Project is held 100% by Mundoro and is available for new partnerships.

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Mundoro Capital Inc. published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 May 2024 05:35:09 UTC.