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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.
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.  For further information:
Greg Struble
President and CEO
Email: greg.struble@maudore.com
+1 647 927 0239
George Fowlie
Deputy Chairman of the Board and Director of Corporate Development
Email: george.fowlie@maudore.com
+1 416 587 9801
Claudine Bellehumeur
Chief Financial Officer
Email: cbellehumeur@aurbec.com
+1 819 825 4343
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