Mundo secures underwriter for $5.3m SPP

The $5.3 million share purchase plan issued by West Perth-based gold explorer Mundo Minerals Ltd has been fully underwritten by Lodge Corporate Pty Ltd, which the company says will increase its available cash to over $30 million.

The full text of a company announcement is pasted below

Mundo Minerals Limited (ASX: MUN) advises that the Share Purchase Plan ("SPP") announced on 18 July 2007 has been fully underwritten by Lodge Corporate Pty Ltd. Subject to the Underwriting Agreement (which contains
typical termination rights), this will ensure that Mundo Minerals secures the full amount of $5,320,000 available for subscription by shareholders under the share purchase plan.

This underwriting, combined with the recently announced $18 million share placement and existing cash resources of the Company, will increase the Company's available cash to more than $30 million. This will consolidate the
Mundo Minerals financial position, enabling it to develop all of its gold assets in South America in a timely and focused manner.

The underwriting is conditional on shareholders approving the second tranche of the recently announced share placement at a shareholders meeting to be held on 24 August 2007.

The underwriting agreement has been entered into under normal commercial terms.

The approvals expected to be achieved on 24 August will allow any shortfall under the Share Purchase Plan to be allotted under the 15% allowance that will be available to the Company subsequent to shareholders ratifying the
recent placement of 14,400,000 shares.