Quantcast

Maudore Finalizes the Implementation of its Previously Announced Consensual Debt Restructuring and Considers its Strategic Alternatives

June 26, 2014

MONTREAL, June 26, 2014 /CNW Telbec/ – Greg Struble, President and Chief
Executive Officer of Maudore Minerals Ltd. (MAO: TSX Venture; MAOMF: US OTC; M6L: Frankfurt Exchange) (“Maudore” or the “Corporation“), announces today that the Corporation has completed the
implementation of its previously announced consensual restructuring of
its debts, and is now turning its focus to the review of its strategic
alternatives in order to maximize value for its shareholders and other
stakeholders.

Earlier Maudore had announced that it had reached an agreement (the “FBC Agreement“) with FBC Holdings S.à.r.l. (“FBC“) pursuant to which FBC has agreed to provide Maudore and its
subsidiary Aurbec Mines Inc. (“Aurbec“) with additional funding and to restructure the terms of their
indebtedness to FBC, and that the shareholders of Maudore (excluding
FBC and its affiliates) had approved the implementation of the FBC
Agreement at the annual and special meeting of the Corporation held on
May 22, 2014. The material definitive documentation giving effect to
the final transactions contemplated by the FBC Agreement has now been
executed such that all of the transactions with FBC have been
completed.

In conjunction with the finalization of this debt restructuring, FBC has
agreed to provide Aurbec with access to the full amount of its
previously approved $2 million senior secured loan, with the proceeds
to be used for general corporate purposes in continuing the operations
at the Sleeping Giant Mine. FBC will also provide funding sufficient to
satisfy Aurbec’s new environmental bonding requirements in 2014 of
approximately $0.9 million.

Maudore also announces that it has engaged Clarus Securities Inc. to
provide it with advice in connection with a review of its available
strategic alternatives which the Corporation has decided to initiate in
order to maximize value for its shareholders and other stakeholders.

As regards the other major creditors of Maudore and Aurbec, the
Corporation had previously announced that it had reached an agreement
with other major creditors of Aurbec, who were owed an aggregate of
approximately $3.4 million, for the payment to them of 14 monthly instalments of approximately $85,000, with a final balloon
payment of approximately $2.2 million to be made in March 2015, in full
settlement of such indebtedness. Today the Corporation further
announces that it has also reached an agreement with additional major
creditors of Maudore, who are owed an aggregate of approximately $2.0
million. This agreement calls for the payment to them of nine monthly
instalments of $56,500 beginning in June 2014, in full settlement of
such indebtedness and of various other obligations owing to them.

“While this restructuring and additional availability of working capital
is an important milestone, we continue to face challenges as we work to
develop the potential of the Sleeping Giant Mine,” said Greg Struble.
“The course forward will be to use this financing as a step toward the
validation of the new resource zones recently opened up at depth and to
further refine our strategic options for the Corporation going forward.
The first step in this process will be, effective today, a temporary
layoff to reduce the overall manpower by 54% down to a level that will
only support the test mining in the new zones as well as continue to
support toll milling for third parties as practical. In the coming
weeks, we will be working closely with our lenders, suppliers and
customers to develop a longer term strategy and mining plan based on
the options assessed in our strategic review. We recognize the impact
that this will have on our employees and the immediate communities and
express our gratitude to them and to our lenders and business partners
for their assistance and support in this endeavour.”

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, all
gold production is coming from 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, failure to obtain any required financing or
identify or implement any strategic alternatives for the Corporation,
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.

SOURCE Maudore Minerals Ltd.


Source: PR Newswire



comments powered by Disqus