Maudore Announces Revised Terms for its Consensual Restructuring

MONTREAL, Nov. 14, 2013 /CNW Telbec/ - On October 15th, Maudore Minerals Ltd. (MAO: TSX-Venture; MAOMF: US OTC; M6L: Frankfurt Exchange) announced that it had entered into agreements for the consensual restructuring of current debts with Cyrus Capital Partners ("Cyrus"), in its capacity as a manager to FBC Holdings S.à.r.l ("FBC"), as well as with the major unsecured creditors at both Maudore and its operating subsidiary Aurbec Mines Inc. (the "Consensual Restructuring"), and that certain aspects of the Consensual Restructuring were subject to the approval of the TSX Venture Exchange (the "Exchange").

In order to comply with the requirements of the Exchange, Maudore and Cyrus have agreed to certain minor modifications to the terms of the restructuring of the $22 million secured term loan (the "Credit Facility") granted by FBC.  The restructuring of the Credit Facility may now be summarized as follows:

  • FBC will make available a new liquidity facility of up to $6 million, bearing interest at 15% per annum, payable quarterly in arrears in cash and having a maturity date of one year following closing, provided, however, that the Company will be required to immediately repay to FBC up to a maximum of $2 million of any tax refunds received from the Province of Quebec;

  • $3 million of the existing Credit Facility will be converted into an equivalent amount of 5% convertible debentures having a three year maturity and convertible at FBC's option into an aggregate of 25 million common shares, based on a conversion price of $0.12 per share;

  • FBC will allow the Company to access funds available in the interest escrow account established pursuant to the Credit Facility, with the net proceeds to be applied to pay approximately $0.5 million as a pre-payment premium and to pay or prepay, as the case may be, approximately $2.8 million of interest expenses relating to the Credit Facility which is due or coming due up to June 30, 2014;

  • FBC will commit to subscribe for not less than its proportionate share of the Company's previously announced $4.72 million rights offering (the "Rights Offering"), representing aggregate gross proceeds to the Company of not less than approximately $725,000; and

  • In consideration of this restructuring, the Company will issue 8,888,888 common shares to FBC.

In connection with the Rights Offering, members of the senior management of the Company have reiterated their commitment to exercise the rights to be received by them in order to subscribe for an aggregate of $300,000 worth of common shares.

The implementation of the Consensual Restructuring remains subject to the final approval of the Exchange.

Greg Struble, the President and Chief Executive Officer of Maudore, further announced today that Kevin Tomlinson has advised the Board of Directors that he intends to step down from the Board upon completion of the Consensual Restructuring. In making this announcement, Mr. Struble remarked that "Kevin has been instrumental in the transition of the Company from purely exploration into a fully operational producer.  His stewardship during this transition has been essential in building the team and moving the Company forward through some of the most difficult times for commodity prices as well as a collapse in the public markets for shares of junior mining companies.  He will redirect his time with Maudore in an advisory consultant role as required.  With his strong structural geology background, Kevin will initially focus on the further development of the new resource potential currently underway at the Sleeping Giant Mine as well as Maudore's additional prospects."

Mr. Tomlinson said, "I am incredibly proud to have been part of a most enthusiastic, dedicated and positive team during these very trying times.  Executing this restructuring programme in the current environment has taken exceptional effort by everyone and with its completion and the funding that has been arranged, plus the proving up of extensions to the high-grade veins at Sleeping Giant, the future for Maudore is assured.  Given the importance of unravelling the complex geology in the immediate term, I would like to concentrate my efforts delineating extensions to the high-grade veins at Sleeping Giant which we have now proven to exist and on the discovery of further gold resources in our significant land holdings in the Northern Abitibi."

The Board has accepted Mr. Tomlinson's decision and will consider candidates to fill the role of Chairman over the coming weeks.

About Maudore Minerals Ltd.

Maudore is a Quebec-based junior gold company 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 Company'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 1,570 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 Company 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 Company, business and financing plans, business trends and future operating revenues. These statements are inherently uncertain and actual achievements of the Company 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 TSXV 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 Company'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.

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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