Maudore Minerals Ltd. Announces Year End 2014 Results

04.05.2015  |  Marketwired

TORONTO, May 4, 2015 - Maudore Minerals Ltd. ("Maudore" or the "Corporation") (TSX VENTURE:MAO) (OTCQX:MAOMF) (FRANKFURT:M6L) - announces its results for the fiscal year ended December 31, 2014. Financial results are based on International Financial Reporting Standards ("IFRS") and dollars are reported in Canadian currency, unless otherwise noted.


Highlights for 2014

• On June 25, 2014, a consensual restructuring was implemented;
• Also in June 2014, the Corporation implemented a strategic review of its options for funding continued development of the Sleeping Giant mine and the exploration properties. To facilitate this review, the Corporation retained Clarus Securities Inc. and implemented the following steps at the Sleeping Giant operation:
  • All major mine development and diamond drilling programs were placed on hold on June 26^th;
  • A 54% reduction in work force was made, which allowed for test mining in three of the new zone stopes to validate resource reconciliation of these new areas;
  • The Corporation continued with custom milling operations for a third party through the end of Q3;
  • Test mining in the three new zone stoping areas was completed with positive resource reconciliation results; and
  • Despite the positive results, there was insufficient scale to create a viable long term recovery plan to full production levels without additional development into new areas.
• During the strategic review and in parallel to the operations, peer and major gold producing companies were targeted for potential strategic business opportunities;
• With the depressed metal prices, lack of readily available funding opportunities in the market in general and the impact of these conditions on all gold producers, the Corporation received very little encouragement that a beneficial strategic alternative existed at this time;
• Consequently, On September 8, 2014, the Corporation filed a Notice of Intention ("NOI") to make a proposal under the Bankruptcy and Insolvency Act (Canada) ("BIA") in respect of the Corporation and of Aurbec Mines Inc. ("Aurbec"), a subsidiary of the Corporation. A NOI is the first stage of a process under the BIA which allows for a financial restructuring through a formal proposal to creditors for the settlement of the indebtedness owing to them. Furthermore, Samson Belair/Deloitte & Touche Inc. ('Deloitte") has been appointed as the trustee in the Proposal proceedings of Maudore and Aurbec, and in that capacity is monitoring and assisting the companies in their restructuring efforts;
• Sleeping Giant's underground mining and surface ore processing were all shut down and the operations were placed into care and maintenance by the end of November, 2014;
• On December 17, 2014, pursuant to an application brought by its principal secured creditor, FBC Holdings S. à r.l., Deloitte has been appointed as receiver of all the assets, undertakings and properties of Aurbec, with the exception of the Vezza Project which is subject to a prior-ranking hypothec. As a result of the appointment of the Receiver, all of the directors and officers of Aurbec have resigned and the Corporation lost control of Aurbec;
• As a result of the decision taken not to seek any further extension of its deadline to make a proposal to its creditors, Aurbec has the status of a bankrupt entity under the BIA since January 7, 2015;
• On March 2, 2015, the Corporation's proceedings under BIA have been continued under the Companies' Creditors Arrangement Act (the "CCAA"), with Deloitte transitioning from its role as trustee under the BIA to the role of monitor under the CCAA.

• Revenues of $10.7 million in 2014 coming from the sale of gold at the Sleeping Giant mine and custom milling comparing with $1.6 million in 2013;
• Net loss of ($28.6) million in 2014, or ($0.38) per share compare with a net loss of ($30.3) million, or ($0.73) per share in 2013. Out of importance, the following non-recurring expenses were incurred:
  • $10.3 million impairment on Sleeping Giant following the decision to completely shut down all underground mining and surface ore processing at the Sleeping Giant mine and place the operations into care and maintenance ;
  • A $2,858,206 ($7,715,324 in 2013) fair value variation on Credit Facility was recorded in 2014;
  • The Corporation jointly and severally guaranteed a loan made by FBC to Aurbec. Subsequent to Aurbec's inability to repay the $2,268,351 Second Senior loan and the $4,289,006 royalty as at December 17, 2014, the Corporation recognized the full amount of the liability and the accrued interest in its books for $6,557,357