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.

Greg Struble
President and CEO
Email: [email protected]
[phone]

George Fowlie
Deputy Chairman of the Board and Director of Corporate Development
Email: [email protected]
[phone]

Claudine Bellehumeur
Chief Financial Officer
Email: [email protected]
[phone]