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,
2014 |
December 31
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.