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MONTREAL, QUEBEC--(Marketwire - April 1,
2010) - MDN Inc. (TSX:MDN) ("MDN") today released its audited
financial statements for the year ended December 31, 2009. Management's
discussion and analysis and the audited financial statements are available
on the Company's website (www.mdn-mines.com) and on SEDAR (www.sedar.com).
Revenue for the year ended December 31, 2009 totaled $7.1 million
compared with $27.3 million for the same period in 2008. MDN received a
royalty equivalent to 30% of the available liquidity of the Tulawaka
gold mine, or $6.9 million plus interest revenue of $155,436 from
investments.
The Tulawaka gold mine produced a total of 748,000 ounces of gold since
the beginning of operations as an open pit in 2005. The year 2009 was
the first year as an underground operation and ramps and galleries were
completed down to the 7th level. Gold extraction from stopes took place
in majority from the top three levels and underground exploration
allowed the 2009 extracted reserves to be replaced.
Tulawaka's life of mine as of December 31, 2009 was estimated at
approximately two years based on its proven and probable reserves.
However, based on current successful underground drilling results, a
plan to extend underground exploration drilling is being developed to
define the potential for life of mine extensions. The Tulawaka mine
carries no debt.
Working capital as of December 31st, 2009 amounted to 19.8 million
dollars.
SUMMARY OF OPERATING RESULTS
For the year ended December 31 2009 2008 ------------------------------------------------------------------------ ------------------------------------------------------------------------ (In thousands of dollars, except for per share amounts) Revenue 7,110 27,257 Administrative expenses 4,091 4,356 Royalties on gold price - 4,929 Foreign exchange loss (gain) 363 (972) Net income (loss) 824 22,957 Net earnings (net loss) per share, basic and fully diluted 0.009 0.239 ------------------------------------------------------------------------ Weighted-average number of shares outstanding (in thousands) 94,839 91,678
Summary results of the Tulawaka gold mine (100%) MDN's participating interest is 30% For the year ended December 31 2009 2008 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Gold production (oz) 94,180 211,373 Gold sales (oz) 93,355 212,913 Average sales price / oz (in $ US) 966 880 Total revenues (in millions of $ US) 90.2 187.5
Serge
Bureau, President and CEO of MDN commented "The year 2009 was a
transition year for the Tulawaka gold mine as operations moved from
open pit to underground mining. Nonetheless, MDN's strategy remains the
same: to be a growing junior gold company with the uniqueness of having
its exploration programs fully funded by a stable source of revenues.
We are committed to remain a gold explorer, with a potential source of
cash from two good mining assets, one in operation and the other moving
forward with the development of the Crevier project, a secure North
American source of strategic metals."
Exploration in Tanzania
Drilling programs of 2009 were mainly focused on Isambara, a 40 km2
property owned 100% by MDN and located 28 km north of the Tulawaka
mine. MDN discovered a gold mineralization zone in the southern part of
a soil anomaly of great dimension, which extends 3 km by 4 km. A
follow-up drilling program will be initiated in 2010. Overall, MDN
plans to drill 12,000 meters in 2010 on Isambara, Viyonza and Msasa
properties, more than twice the drilling program of 2009.
At Ikungu, a 17.9 km2 property MMI data and drilling results confirm
that gold mineralization extends over at least 2.5 km. This gold
structure bears an excellent potential for a discovery by MDN and about
2,500 m of drilling is in progress on the property during 2010.
The Tulawaka project is a contractual joint-venture between MDN (30%
participating interest) and Pangea Goldfields Inc. (70% participating
interest), a wholly owned indirect subsidiary of African Barrick Gold
plc and project operator and owner through its subsidiary Pangea
Minerals Ltd. The information disclosed on the Tulawaka Gold Mine is
based on information provided by the Operator.
About MDN
MDN Inc.(TSX:MDN) is a mining exploration and development company with
adequate financial resources to develop its promising projects in
Quebec and in Tanzania. MDN also remains active in the search for new
business opportunities that can raise shareholder value. In addition to
its 30% participation in the Tulawaka Gold Mine, MDN is the operator
and owner of a majority interest in mineral licenses totalling 715 km2
around the Tulawaka gold mine in Tanzania. The company also owns a
67.5% interest in Mineraux Crevier Inc., which owns a property with a
NI 43-101 niobium and tantalum resource located in the Lac St-Jean area
of Quebec. MDN has an option to increase its equity participation in
Mineraux Crevier Inc. up to 87.5%. Additional information is available
on MDN's website at www.mdn-mines.com.
Forward looking statements
All statements in this release, other than statements of historical
fact, that address events or developments that the Company expects to
occur, are forward looking statements. Although the Company believes
the expectations expressed in such forward-looking statements are based
on reasonable assumptions, such statements are not guarantees of future
performance and actual results may differ materially from those in
forward looking statements. Factors that could cause the actual results
to differ materially from those in forward-looking statements are
discussed in greater detail in the Company's most recent Annual
Information Form filed on SEDAR, which also provides additional general
assumptions in connection with these statements. Investors and others
who base themselves on the Company's forward-looking statements should
carefully consider the factors mentioned in the Annual Information Form
as well as the uncertainties they represent and the risk they entail.
The Company believes that the expectations reflected in those
forward-looking statements are reasonable, but no assurance can be
given that these expectations will prove to be correct and such
forward-looking statements included in this press release should not be
unduly relied upon. These statements speak only as of the date of this
press release.
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