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Maudore Announces First Quarter 2014 Results

May 21, 2014

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



    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.


Source: PR Newswire



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