Mundoro Announces Option Agreement with BHP for Exploration Licences in Central Timok, Serbia

On October 13, 2025, Mundoro announced a definitive option agreement with BHP for seven exploration licenses in the Central Timok region of Serbia. Under the terms, BHP can earn a 100% interest in the project by funding US$35 million in exploration expenditures over a 10-year period.

The key terms of the agreement are: * Exploration Funding: BHP will solely fund US$35 million in exploration. * Annual Payments: Mundoro will receive annual cash option payments starting at US$323,000, increasing by 2% annually. * Milestone Payments: Mundoro is entitled to up to US$10 million in milestone payments tied to the definition of a mineral resource. * Retained Royalty: Upon BHP exercising the option, Mundoro will retain a 2% Net Smelter Return (NSR) royalty. BHP has the right to buy back 50% of the royalty (1% NSR) before production commences. Mundoro will also receive advanced royalty payments. * Operator Status: Mundoro will be the initial operator, earning operator fees. BHP can assume operatorship after spending US$20 million or drilling 40,000 meters. * Total Potential Value: The total potential value to Mundoro, if the earn-in is completed, is estimated at US$48.5 million (C$67.8 million), excluding the value of the retained royalty.

The project covers 418 sq km and includes several prospective targets, such as the Skorusa Porphyry System and the Tilva Rosh Prospect, where past work has shown promising copper-gold and gold-silver mineralization.

This agreement is a materially positive event for Mundoro and represents a major success for its project-generator business model.

Context and Progression: The announcement is the successful culmination of a Letter of Intent (LOI) mentioned in the Q2-2025 update, where Mundoro was in exclusive due diligence with a "third party" for these same seven licenses. This demonstrates strong execution and the ability to close significant deals. This partnership also effectively replaces and surpasses a previous agreement with Vale that was terminated in early 2024, showing resilience and the high quality of the asset portfolio that could attract an even larger commitment from a top-tier partner.

Financial Impact: The deal significantly de-risks the company's financial position. As of June 30, 2025, Mundoro's cash position was C$4.1 million, with a net loss of C$540k for the first half of the year. The guaranteed, non-dilutive annual cash payments from BHP, coupled with operator fees, will provide a stable revenue stream to offset corporate G&A and generative exploration costs. This greatly reduces the near-term risk of a dilutive equity financing. The total potential value of C$67.8 million is nearly three times Mundoro's current market capitalization, highlighting the transformative scale of the agreement.

Strategic Impact: This agreement deepens Mundoro's strategic partnership with BHP, the world's largest mining company. This is a powerful third-party validation of Mundoro's technical expertise, its generative exploration model, and the prospectivity of the Timok Magmatic Complex. Being the initial operator allows Mundoro to leverage its local expertise, maintain control over the initial exploration phases, and generate additional revenue.

In conclusion, this agreement provides long-term, non-dilutive funding for a core asset, validates the company's strategy, strengthens its balance sheet, and enhances its credibility within the industry. It is a textbook example of successful execution for a project generator.

Mundoro Capital Inc. is a mineral exploration company operating under a "project generator" business model. It focuses on discovering and acquiring large, early-stage copper and gold projects in prospective jurisdictions. Mundoro then advances these projects through initial exploration before optioning them to major mining companies, who then fund further, more expensive exploration and development. In return, Mundoro earns operator fees, cash payments, and retains a royalty interest.

The company's primary focus is the Timok Magmatic Complex in Serbia, a prolific mining district. Its flagship portfolio consists of multiple license blocks within this belt, now largely partnered with BHP. The company also holds projects in Bulgaria (partnered with JOGMEC) and the USA (Arizona).