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.
-- 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
MAUDORE MINERALS LTD. Consolidated Statements of Financial Position (in Canadian dollars) March 31, December 31 2014 2013 $ $ ASSETS Current 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 Non-current 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 LIABILITIES Current 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 Non-current 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 EQUITY 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 MAUDORE MINERALS LTD. Consolidated Statements of Comprehensive Loss (in Canadian dollars) For the three-month period ended March 31 2014 2013 $ $ (restated) REVENUES 2,286,770 - OPERATING EXPENSES 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) OTHER EXPENSES 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) OTHER EXPENSES (INCOME) 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) MAUDORE MINERALS LTD. Consolidated Statements of Cash flows (in Canadian dollars) For the three-month period ended March 31, 2014 2013 $ $ (restated) OPERATING ACTIVITIES Net loss (4,299,043) (3,918,852) Adjustments: 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) INVESTING ACTIVITIES 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) FINANCING 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.