MONTREAL, April 25, 2014 /CNW Telbec/ - Maudore Minerals
Ltd. ("Maudore" or the "Corporation") (TSXV:
MAO) (US OTC: MAOMF) (Frankfurt Exchange: M6L)
announces its results for the fiscal year ended December 31, 2013. Financial results are based on
International Financial Reporting Standards ("IFRS") and dollars
are reported in Canadian currency, unless otherwise noted.
Highlights for 2013
- Acquisition of Aurbec Mines Inc. ("Aurbec") (previously named
NAP Québec Mines Ltd) from North American Palladium Ltd on
March 22, 2013 funded through a
secured term loan of $22 million
("Credit Facility") provided to the Corporation by FBC Holdings
S.à r.l. ("FBC");
- Closing a brokered private placement for $15.5 million on April 12,
2013;
- Initiation of exploration and development drilling underground
at Sleeping Giant on the new ore zones and extensions to the
historical high grade zones;
- Suspension of the Vezza project's development on July 16th, 2013 and subsequent mine
out of the currently developed ore zones by the end of September 2013;
- August 2013 re-start of
underground mining at the Sleeping Giant mine in remnant mining
areas;
- Completion of a custom milling agreement with Abcourt Mines Inc
("Abcourt") in September 2013;
- Recent reduction in gold prices created a strain on the
Corporation's cash resources. Ongoing discussions took place
throughout the year with its creditors. In March 2014, the Corporation has reached an
agreement with FBC which provides it with access to additional
funding (the "FBC Agreement") (refer to press release dated
March 14, 2014).
Financial
- Revenues of $1.6 million in 2013
coming from the sale of gold at the Sleeping Giant mine and custom
milling. In 2012, there were no gold sales as Maudore was an junior
exploration Corporation;
- Net loss of ($30.3) million in
2013, or ($0.73) per share compare
with a net loss of ($14.7) million,
or ($0.55) per share in 2012. Out of
importance, the following non-recurring expenses were
incurred:
-
- $11.0 million impairment on Vezza
following the suspension of its development;
- $3.5 million professional fees
relating to the acquisition of Aurbec, the rights offering and debt
restructuring negotiations. In 2012, $1.7
million were incurred in professional fees on the proxy
contest;
- $7.7 million for the fair value
variation on the Credit Facility that must be recorded as per IFRS
rules even though the Corporation reached the FBC Agreement;
- Vezza production of 10,249 ounces of gold of which 10,247 were
sold in 2013 generating $14.3 million
of revenues that are capitalized against the development cost of
Vezza;
Proxy Circular
The Corporation also announces that it has
mailed to shareholders and filed in SEDAR the Management Proxy
Circular that has been prepared in connection with its upcoming
annual and special meeting of shareholders scheduled to be held on
May 22, 2014.
At that meeting, shareholders will be asked to
approve, among other matters, the previously announced financing
and debt restructuring transactions entered into by the Corporation
with FBC which have been designed to improve the financial position
of the Corporation. Should the FBC Agreement not to be
approved by the disinterested shareholders, this would result in
Maudore and/or Aurbec being in default of their obligations under
the Credit Agreement and of their payment obligations towards other
creditors. Should any of those creditors seek to exercise
their rights to obtain repayment of their debts, it is likely that
Maudore and/or Aurbec would seek protection under the Companies'
Creditors Arrangement Act (Canada)
or the Bankruptcy and Insolvency Act (Canada) and that in such a scenario the
resulting value of the equity shareholdings of the Shareholders
would be reduced to virtually nil.
The Management Proxy Circular contains important
information about these transactions, as well as the unanimous
recommendation of the Corporation's board of directors that
shareholders vote to approve such transactions.
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, 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 1,532 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. |
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Consolidated Statements of Financial Position |
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(in Canadian dollars) |
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|
2013 |
2012 |
2011 |
|
$ |
$ |
$ |
|
|
(restated) |
(restated) |
ASSETS |
|
|
|
Current |
|
|
|
Cash and cash equivalents |
820,734 |
3,126,129 |
15,169,610 |
Restricted cash |
3,316,161 |
- |
- |
Tax credits receivable |
4,705,289 |
149,286 |
3,682,447 |
Accounts receivable |
291,299 |
- |
- |
Sales tax receivable |
197,653 |
211,700 |
350,696 |
Inventories |
3,130,141 |
- |
- |
Prepaid expenses |
463,589 |
40,513 |
56,699 |
|
12,924,866 |
3,527,628 |
19,259,452 |
Non-current |
|
|
|
Reclamation deposit |
1,880,084 |
- |
- |
Non-current portion of tax credits receivable |
613,825 |
- |
- |
Exploration and evaluation assets |
5,325,775 |
710,469 |
557,248 |
Property, plant and equipment |
9,461,520 |
- |
- |
|
17,281,204 |
710,469 |
557,248 |
|
|
|
|
Total assets |
30,206,070 |
4,238,097 |
19,816,700 |
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LIABILITIES |
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Current |
|
|
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Accounts payable and accrued liabilities |
9,962,427 |
2,370,541 |
1,953,756 |
Liabilities related to the issuance of
flow-through shares units |
- |
- |
5,435,214 |
Credit facility |
27,315,324 |
- |
- |
Current portion of obligations under finance
leases |
185,407 |
- |
- |
|
37,463,158 |
2,370,541 |
7,388,970 |
Non-current |
|
|
|
Term loans |
- |
3,091,383 |
- |
Obligations under finance leases |
13,143 |
- |
- |
Mine restoration provision |
6,232,912 |
- |
- |
Other liabilities |
212,706 |
- |
- |
|
6,458,761 |
3,091,383 |
- |
|
|
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Total liabilities |
43,921,919 |
5,461,924 |
7,388,970 |
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EQUITY |
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Share capital |
60,079,772 |
43,333,965 |
42,721,672 |
Contributed surplus |
6,579,202 |
5,979,425 |
4,970,148 |
Warrants |
1,050,803 |
599,777 |
1,176,091 |
Deficit |
(81,425,626) |
(51,136,994) |
(36,440,181) |
Total equity |
(13,715,849) |
(1,223,827) |
12,427,730 |
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|
|
Total liabilities and equity |
30,206,070 |
4,238,097 |
19,816,700 |
Maudore Minerals Ltd. |
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Consolidated Statements of Comprehensive Loss |
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(in Canadian dollars) |
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2013 |
2012 |
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$ |
$ |
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(restated) |
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REVENUES |
1,570,081 |
- |
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OPERATING EXPENSES |
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Production costs |
4,189,843 |
- |
Depreciation and amortization |
91,593 |
- |
Total mining operating expenses |
4,281,436 |
- |
Loss from mining operations |
(2,711,355) |
- |
|
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OTHER EXPENSES |
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|
General and administrative expenses |
2,915,606 |
2,828,363 |
Acquisition related expenses |
2,194,231 |
- |
Rights offering expenses |
683,388 |
- |
Debt restructuring expenses |
646,519 |
- |
Professional fees related to proxy contest |
- |
1,687,825 |
Exploration and evaluation expenses |
699,607 |
15,639,427 |
Gain on disposal of property, plant and
equipment |
(22,200) |
- |
Impairment of property, plant and equipment |
11,029,376 |
- |
Total other expenses |
18,146,527 |
20,155,615 |
Loss from operations |
(20,857,882) |
(20,155,615) |
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OTHER EXPENSES (INCOME) |
|
|
Financial expenses |
1,649,394 |
63,313 |
Fair value variation on credit facility |
7,715,324 |
- |
Finance costs on mine restoration provision |
77,210 |
- |
Interest income |
(101,068) |
(86,901) |
Loss before income taxes |
(30,198,742) |
(20,132,027) |
|
|
|
Deferred income taxes (recovery) and mining duty
taxes |
89,890 |
(5,435,214) |
|
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NET LOSS AND COMPREHENSIVE LOSS |
(30,288,632) |
(14,696,813) |
Maudore Minerals Ltd. |
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Consolidated Statements of Cash flows |
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(in Canadian dollars) |
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|
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|
2013 |
2012 |
|
$ |
$ |
|
|
(restated) |
OPERATING ACTIVITIES |
|
|
Net loss |
(30,288,632) |
(14,696,813) |
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Adjustments: |
|
|
Recovery of deferred income taxes |
- |
(5,435,214) |
Share-based compensation |
- |
672,300 |
Accrued interest related to term loans |
(18,329) |
23,783 |
Transaction costs related to term loans |
284,397 |
- |
Fair value variation on credit facility |
7,715,324 |
- |
Depreciation and amortization |
91,593 |
- |
Gain on disposal of property, plant and
equipment |
(22,200) |
- |
Impairment of property, plant and equipment |
11,029,376 |
- |
Accretion on payables resulting from the
acquisition of Aurbec Mines Inc. |
54,780 |
- |
Finance costs on mine restoration provision |
77,210 |
- |
Changes in working capital items |
2,318,794 |
411,147 |
Net cash flows used in operating
activities |
(8,757,687) |
(19,024,797) |
|
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INVESTING ACTIVITIES |
|
|
Acquisition of Aurbec Mines Inc. |
(18,250,000) |
- |
Additions to exploration and evaluation
assets |
(115,306) |
(111,721) |
Additions to property, plant and equipment |
(17,709,746) |
- |
Sales deducted from capitalized costs |
14,310,847 |
|
Proceeds on disposal of property, plant and
equipment |
23,200 |
- |
Reclamation deposit |
(1,880,084) |
- |
Tax credits received |
1,130,276 |
3,693,981 |
Net cash flows from (used in) investing
activities |
(22,490,813) |
3,582,260 |
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FINANCING |
|
|
Term loans |
- |
3,250,000 |
Repayment of term loans |
(3,250,000) |
- |
Term loans structuring fees |
(107,451) |
(182,400) |
Repayment of bank indebtedness |
(179,159) |
- |
Issue of credit facility |
22,000,000 |
- |
Transaction cost paid to FBC Holding S.à r.l. |
(440,000) |
- |
Restricted funds |
(3,316,161) |
- |
Repayment of obligation under finance leases |
(142,930) |
- |
Other liabilities |
60,196 |
- |
Issue of shares |
15,506,250 |
387,325 |
Share issue expenses |
(1,187,640) |
(55,869) |
Net cash flows from financing
activities |
28,943,105 |
3,399,056 |
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Net change in cash and cash equivalents |
(2,305,395) |
(12,043,481) |
Cash and cash equivalents, beginning of year |
3,126,129 |
15,169,610 |
Cash, end of year |
820,734 |
3,126,129 |
SOURCE Maudore Minerals Ltd.