Maudore Announces Year End 2014 Results
FREE Breaking News Alerts from StreetInsider.com!
StreetInsider.com Top Tickers, 10/11/2026
- Wall Street posts weekly gains with earnings, inflation data on tap
- Oil prices settle higher as more production shut ahead of hurricane
- Apple cuts iPhone 18 Pro orders due to soft demand, Nikkei Asia reports
- UBS flags level in gold prices where dip buyers will likely emerge
- Telecom stocks tumble on SpaceX spectrum acquisition news
Tweet
Share
E-mailTORONTO, ONTARIO -- (Marketwired) -- 05/04/15 -- 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 26th;
-- 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. a 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.
Financial
-- 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
About Maudore Minerals Ltd.
Maudore is a Quebec-based junior gold company with more than 11 exploration projects. One of these projects is at an advanced stage of development with reported current and historical resources and mining.
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, rulings of applicable judicial authorities having jurisdiction over the Corporation's insolvency proceedings, 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, 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)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
$ $
ASSETS
Current
Cash 10,221 820,734
Restricted cash - 3,316,161
Tax credits receivable 35,728 4,705,289
Accounts receivable - 291,299
Sales tax receivable 45,982 197,653
Inventories - 3,130,141
Prepaid expenses 55,404 463,589
----------------------------------------------------------------------------
147,335 12,924,866
Non-current
Reclamation deposit - 1,880,084
Non-current portion of tax credits receivable - 613,825
Exploration and evaluation assets 806,028 5,325,775
Property, plant and equipment - 9,461,520
----------------------------------------------------------------------------
806,028 17,281,204
----------------------------------------------------------------------------
Total assets 953,363 30,206,070
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES
Current
Accounts payable and accrued liabilities 2,901,179 9,962,427
Credit facility 27,290,669 27,315,324
Senior secured loan 2,284,237 -
Royalty 4,318,986 -
Current portion of obligations under finance
leases - 185,407
----------------------------------------------------------------------------
36,795,071 37,463,158
Non-current
Obligations under finance leases - 13,143
Mine restoration provision - 6,232,912
Other liabilities - 212,706
----------------------------------------------------------------------------
- 6,458,761
Total liabilities 36,795,071 43,921,919
----------------------------------------------------------------------------
DEFICIENCY
Share capital 62,984,659 60,079,772
Contributed surplus 6,717,891 6,579,202
Warrants 1,050,803 1,050,803
Deficit (106,595,061) (81,425,626)
----------------------------------------------------------------------------
Total deficiency (35,841,708) (13,715,849)
----------------------------------------------------------------------------
Total liabilities and deficiency 953,363 30,206,070
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maudore Minerals Ltd.
Consolidated Statements of Comprehensive Loss
(in Canadian dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
$ $
REVENUES 10,749,988 1,570,081
OPERATING EXPENSES
Production costs 12,995,997 4,189,843
Depreciation and amortization 394,401 91,593
----------------------------------------------------------------------------
Total mining operating expenses 13,390,398 4,281,436
----------------------------------------------------------------------------
Loss from mining operations (2,640,410) (2,711,355)
OTHER EXPENSES
General and administrative expenses 2,500,926 2,915,606
Acquisition related expenses - 2,194,231
Rights offering expenses 48,264 683,388
Debt restructuring expenses 795,194 646,519
Exploration and evaluation expenses 793,122 699,607
Gain on disposal of property, plant and
equipment (1,092,115) (22,200)
Impairment of property, plant and equipment 10,348,675 11,029,376
----------------------------------------------------------------------------
Total other expenses 13,394,066 18,146,527
----------------------------------------------------------------------------
Loss from operations (16,034,476) (20,857,882)
OTHER EXPENSES (INCOME)
Loss of control - Aurbec Mines inc. 1,804,157 -
Financial expenses 679,228 1,649,394
Fair value variation on credit facility 2,858,206 7,715,324
Loss on guarantee of Aurbec Mines inc. loans 6,557,357 -
Finance costs on mine restoration provision 116,780 77,210
Interest income (64,945) (101,068)
----------------------------------------------------------------------------
Loss before income taxes (27,985,259) (30,198,742)
Deferred income taxes recovery and mining duty
taxes 614,068 89,890
----------------------------------------------------------------------------
NET LOSS AND COMPREHENSIVE LOSS (28,599,327) (30,288,632)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
NET LOSS AND COMPREHENSIVE LOSS ATTRIBUTABLE
TO:
Non-controlling interest (3,296,430) -
Shareholders of the Corporation (25,302,897) (30,288,632)
----------------------------------------------------------------------------
(28,599,327) (30,288,632)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LOSS PER SHARE
Basic and diluted (0.38) (0.73)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Maudore Minerals Ltd.
Consolidation Statements of Cash flows
(in Canadian dollars)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2014 2013
----------------------------------------------------------------------------
$ $
OPERATING ACTIVITIES
Net loss (28,599,327) (30,288,632)
Adjustments:
Loss of control - Aurbec Mines Inc. 1,804,157 -
Loss of control - Aurbec Mines inc. cash
balance (1,863,096) -
Loss on guarantee of Aurbec Mines inc. loans 6,557,357 -
Recovery of deferred income taxes and mining
duty taxes 614,068 -
Share-based compensation 138,689 -
Accrued interest related to loans 652,516 (18,329)
Transaction costs related to term loans - 284,397
Fair value variation on credit facility 2,858,206 7,715,324
Depreciation and amortization 394,401 91,593
Gain on disposal of property, plant and
equipment (1,092,116) (22,200)
Impairment of property, plant and equipment 10,348,675 11,029,376
Accretion on payables resulting from the
acquisition of Aurbec Mines Inc. 19,079 54,780
Finance costs on mine restoration provision (2,435,259) 77,210
Changes in working capital items 1,375,011 2,318,794
----------------------------------------------------------------------------
Net cash flows used in operating activities (9,246,718) (8,757,687)
INVESTING ACTIVITIES
Acquisition of Aurbec Mines Inc. (135,000) (18,250,000)
Additions to exploration and evaluation assets - (115,306)
Additions to property, plant and equipment (2,643,382) (17,709,746)
Sales deducted from capitalized costs - 14,310,847
Proceeds on disposal of property, plant and
equipment 1,153,942 23,200
Reclamation deposit - (1,880,084)
Tax credits received 1,183,007 1,130,276
----------------------------------------------------------------------------
Net cash flows from (used in) investing
activities (441,433) (22,490,813)
FINANCING
Senior secured loans and royalty 5,950,707 -
Repayment of term loans - (3,250,000)
Term loans structuring fees - (107,451)
Repayment of bank indebtedness - (179,159)
Issue of credit facility - 22,000,000
Transaction cost paid to FBC Holding S.a r.l. - (440,000)
Restricted funds 3,316,161 (3,316,161)
Repayment of obligation under finance leases (198,550) (142,930)
Other liabilities (212,706) 60,196
Issue of shares - 15,506,250
Share issue expenses 22,026 (1,187,640)
----------------------------------------------------------------------------
Net cash flows from financing activities 8,877,638 28,943,105
Net change in cash (810,513) (2,305,395)
Cash, beginning of year 820,734 3,126,129
----------------------------------------------------------------------------
Cash, end of year 10,221 820,734
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Contacts: George Fowlie Chairman of the Board, Interim Chief Executive Officer and Interim Chief Financial Officer +1 416 587 9801 [email protected]
Source: Maudore Minerals Ltd.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- SpaceX's spectrum deal puts SIRI's satellite assets in focus
- Viasat stock rises on Raymond James target reiteration
- Alibaba ADR climbs on analyst upgrades, AI momentum
Create E-mail Alert Related Categories
Press ReleasesRelated Entities
Bankruptcy, Earnings, Definitive AgreementSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
