Mundoro Capital Inc. announced the establishment of a generative alliance between Mundoro and Vale Exploration Canada Inc. Mundoro and Vale have entered into an indicative Term- Sheet in November 2021 and expect to enter into a definitive agreement in first quarter 2022. In addition to the Generative Alliance, Mundoro and Vale have entered into a definitive Option Agreement in December 2021 for a property focused on copper porphyry exploration in Arizona according to the commercial earn-in terms identified below. Commercial Terms Highlights. Under the terms of the Generative Alliance, which has an initial term of two years, Vale will annually sole-fund the generative work performed by MUN within the Area of Interest that consists of the states of Arizona and New Mexico. Mundoro will be the operator of the exploration activities while Vale sole funds the Work Program and Budget in order to identify projects suitable for designation as Designated Projects. All generative exploration activities will be guided by a Technical Committee consisting of two members from each company. Mundoro will earn a Management Fee to operate the Generative Alliance. Each Designated Project will be covered by a separate option agreement pursuant to which Vale can acquire 100% of the Designated Project through: (i) sole-funding exploration expenditures during the option period, being up to USD 1,500,000 over two years or USD 2,500,000 over three years, (ii) make property payments during the option period of up to USD 500,000 over the three years, (iii) upon completion of the option exercise, make cash payments to Mundoro which combined equate to USD 9,000,000 over four milestones starting at an initial resources statement for the Designated Project and ending with receipt of permits and licenses necessary to commence construction, and (iv) as part of the option exercise, grant to Mundoro of a 2% NSR on the Designated Project, which includes annual advance royalty payments of USD 200,000 through to commercial production.