Maudore Announces First Quarter 2014 Results

MONTREAL, May 21, 2014 /CNW Telbec/ - Maudore Minerals Ltd. ("Maudore" or the "Corporation") - (TSXV: MAO) (OTCBB: MAOMF) (FWB: M6L) - announces its financial results for the first quarter ended March 31, 2014 ("Q1-14").

Highlights for Q1-14

  • Production of 1,075 ounces from the Sleeping Giant remnant areas, in total 1,302 ounces were sold in Q1-14 with 227 produced during the three-month period ended December 31, 2013;
  • Recent reduction in gold prices contributed to create a strain on the Corporation's cash resources. Ongoing discussions took place throughout Q1-14 with its creditors. In March 2014, the Corporation reached an agreement with FBC Holdings S.à r.l. which provides it with access to additional funding.

Financial results

  • Revenues of $2.3 million in Q1-14 coming from the sale of gold at the Sleeping Giant mine and custom milling;
  • Net loss of ($4.3) million in Q1-14, or ($0.09) per share compare with a net loss of ($3.9) million, or ($0.14) per share in Q1-13.

About Maudore Minerals Ltd.

Maudore is a Quebec-based junior gold corporation in production, with mining and milling operations as well as more than 22 exploration projects. Five of these projects are at an advanced stage of development with reported current and historical resources and mining. Currently, gold production is ramping up at the Sleeping Giant mine. The Corporation's projects span some 120 km, east-west, of the underexplored Northern Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of 1,285 km² with the Sleeping Giant Processing Facility within trucking distance of key development projects.

Cautionary Statement Regarding Forward-Looking Statements
This release and other documents filed by the Corporation contain forward-looking statements. All statements that are not clearly historical in nature or that necessarily depend on future events are forward-looking, and the words "intend", "anticipate", "believe", "expect", "estimate", "plan" and similar expressions are generally intended to identify forward-looking statements. These forward-looking statements include, without limitation, performance and achievements of the Corporation, business and financing plans, business trends and future operating revenues. These statements are inherently uncertain and actual achievements of the Corporation or other future events or conditions may differ materially from those reflected in the forward-looking statements due to a variety of risks, uncertainties and other factors, including, without limitation, financial related risks, unstable gold and metal prices, operational risks including those related to title, significant uncertainty related to inferred mineral resources, operational hazards, unexpected geological situations, unfavourable mining conditions, changing regulations and governmental policies, failure to obtain required permits and approvals from government authorities, failure to obtain any required approvals of the TSX Venture Exchange or from shareholders, failure to obtain any required financing, failure to complete any of the transactions described herein, increased competition from other companies many of which have greater financial resources, dependence on key personnel and environmental risks and the other risks described in the Corporation's continuous disclosure documents.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release

Consolidated Statements of Financial Position
(in Canadian dollars)
  March 31,
December 31
  $ $
Cash and cash equivalents 1,550,671 820,734
Restricted cash - 3,316,161
Tax credits receivable 4,683,650 4,705,289
Accounts receivable 228,172 291,299
Sales tax receivable 231,513 197,653
Inventories 3,587,622 3,130,141
Prepaid expenses 499,813 463,589
  10,781,441 12,924,866
Reclamation deposit 1,880,084 1,880,084
Non-current portion of tax credits receivable 606,367 613,825
Exploration and evaluation assets 5,325,775 5,325,775
Property, plant and equipment 10,620,526 9,461,520
  18,432,752 17,281,204
Total assets 29,214,193 30,206,070
Accounts payable and accrued liabilities 10,502,884 9,962,427
Credit facility 28,322,071 27,315,324
Senior secured loan 1,734,212 -
Current portion of obligations under finance leases 153,624 185,407
  40,712,791 37,463,158
Obligations under finance leases - 13,143
Mine restoration provision 6,250,000 6,232,912
Other liabilities 244,268 212,706
  6,494,268 6,458,761
Total liabilities 47,207,059 43,921,919
Share capital 60,101,798 60,079,772
Contributed surplus 6,579,202 6,579,202
Warrants 1,050,803 1,050,803
Deficit (85,724,669) (81,425,626)
Total equity (17,992,866) (13,715,849)
Total liabilities and equity 29,214,193 30,206,070
Consolidated Statements of Comprehensive Loss
(in Canadian dollars)
  For the three-month period
ended March 31
  2014 2013
  $ $
REVENUES 2,286,770 -
Production costs 4,501,426 64,137
Care and maintenance Vezza 76,911 -
Depreciation and amortization 94,510 4,803
Total mining operating expenses 4,672,847 68,940
Loss from mining operations (2,386,077) (68,940)
General and administrative expenses 580,499 1,057,973
Acquisition related expenses - 2,139,447
Rights offering expenses 43,922 -
Debt restructuring expenses 187,487 -
Exploration and evaluation expenses 39,950 259,840
Total other expenses 851,858 3,457,260
Loss from operations (3,237,935) (3,526,200)
Financial expenses 20,120 460,524
Fair value variation on credit facility and senior secured loan 1,010,959 -
Finance costs on mine restoration provision 36,931 2,248
Interest income (6,902) (3,206)
Loss before income taxes (4,299,043) (3,985,766)
Recovery of deferred income taxes and mining duty taxes - 66,914
NET LOSS AND COMPREHENSIVE LOSS (4,299,043) (3,918,852)
Weighted average number of basic and diluted outstanding shares 47,241,522 27,267,587
Basic and diluted loss per share (0.09) (0.14)
Consolidated Statements of Cash flows
(in Canadian dollars)
  For the three-month
period ended March 31,
  2014 2013
  $ $
Net loss (4,299,043) (3,918,852)
Accrued interest related to term loans - 177,534
Transaction costs related to term loans - 282,990
Fair value variation on credit facility and senior secured loan 1,010,959 -
Depreciation and amortization 94,510 4,803
Accretion on payables resulting from the acquisition of Aurbec Mines Inc. 19,079 -
Finance costs on mine restoration provision 17,088 2,248
Changes in working capital items 86,037 1,952,780
Net cash flows used in operating activities (3,071,370) (1,498,497)
Acquisition of Aurbec Mines Inc. - (18,000,000)
Additions to exploration and evaluation assets - (9,863)
Additions to property, plant and equipment (1,253,516) (321,619)
Mine restoration deposit - (1,885,844)
Net cash flows used in investing activities (1,253,516) (20,217,326)
Term loans structuring fees - (107,451)
Repayment of bank indebtedness - (179,169)
Issue of credit facility - 22,000,000
Transaction cost paid to FBC Holding S.à r.l. - (1,040,859)
Senior secured loan 1,730,000 -
Cash removed from restricted status 3,316,161 -
Repayment of obligation under finance leases (44,926) (4,952)
Other liabilities 31,562 -
Share issue expenses 22,026 (29,599)
Net cash flows from financing activities 5,054,823 20,637,970
Net change in cash and cash equivalents 729,937 (1,077,853)
Cash and cash equivalents, beginning of the period 820,734 3,126,129
Cash, end of the period 1,550,671 2,048,276





SOURCE: Maudore Minerals Ltd.

For further information:

Greg Struble
President and CEO
+1 647 927 0239

George Fowlie
Deputy Chairman of the Board and Director of Corporate Development
+1 416 587 9801

Claudine Bellehumeur
Chief Financial Officer
+1 819 825 4343

Profil de l'entreprise

Maudore Minerals Ltd.

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