Mundoro Capital Inc. announced it has entered into a Option Agreement (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 USD 6,000,000 of exploration expenditures over 5 years with a firm commitment of USD 1,500,000 exploration expenditures in the first 18 months. While Mundoro is the Operator of the GT7 Property, the Company will receive Operator Fees. During the term of the Option, based on certain conditions, Kinross will make annual payments which commence with a payment at the execution of the Agreement. After exercise of the Option, Kinross will make annual payments to Mundoro until commercial production commences. Upon exercise
of the Option, Mundoro will retain a 2% NSR royalty on the Property, of which Kinross will have an option to purchase a portion over two tranches which are: within 3 years of the Option exercise, purchase 0.5% of the NSR royalty for a payment price linked to the gold price at that time (the Initial Buy-back), and if the Initial Buy-Back is completed, at any time thereafter purchase an additional 0.5% of the NSR royalty for a payment price linked to the gold price at that time.