MONTREAL, Aug. 25, 2013 /CNW Telbec/ - Greg Struble, President and CEO
of Maudore Minerals Ltd. (MAO: TSX-Venture) (MAOMF: US OTC) (M6L: Frankfurt Exchange) reports that on Friday August 23rd, at 1:00 pm EDT
in the afternoon, the Company temporarily halted trading of its shares
in order to allow all shareholders to be made aware of the wrongful
actions taken by Promec Mining against the Company and the Company's
response to those actions.
While the Company has an ongoing dispute with their previous mining
contractor, Promec Mining, over the contractual payment terms, work
continues with alternate labor sources at the Vezza location as we ramp
down this project and prepare the re-start of activities at our
Sleeping Giant mine north of Amos. There has been no change in our
short-term plans and activities. We have very strong support from our
senior secured lender as well as the many suppliers and employees who
continue to stand by our side.
As previously announced, on August 14th Promec Mining pulled their crews
from the Vezza project earlier than planned over a dispute to
renegotiate contractual payment terms as their work draws to a close.
Since this time the company has continued to reach out in good faith in
an effort to resolve this dispute on mutually acceptable terms.
On August 15th Promec Mining registered a 'Notice of Legal Hypothec'
against the company on the Vezza project and the Sleeping Giant mine.
The company believes this claim to be grossly inaccurate and it is
vigorously working to have the registration removed.
On August 19th a second meeting was held at the Promec offices in
Montreal to continue our discussions. This was to be followed up with
a meeting between Promec Mining and our senior secured lender on Monday
the 26th. Promec Mining did not respond to our follow-up requests and
subsequently has filed a 'notice of bankruptcy proceeding' on Friday
the 23rd. The company believes this to be an invalid filing and will
vigorously work to have it dismissed.
Also on Friday the 23rd, an article appeared in the La Frontiere
newspaper out of Rouyn-Noranda, in which several inaccurate statements
were attributed to Mr. Jos Deschesnes of Promec Mining, which also
divulged confidential aspects of our ongoing negotiations in clear
violation of our mutual non-disclosure agreement. This agreement was
signed prior to the negotiations regarding the current dispute. In
this article, Promec Mining has wrongfully and inaccurately related the
circumstances surrounding its dispute with Maudore Minerals, as well as
defamed the company and its management.
Because of these actions taken by Promec Mining, the company will take
immediate legal action against Promec Mining and their parent Promec
Construction including the filing of a claim for any damages to our
business from their filing of the lien and wrongful commencement of the
bankruptcy proceeding as well as for breach of contract and breach of a
confidentiality agreement.
Maudore Minerals, through its subsidiary, Aurbec, has been actively
adjusting to the significant market pressures that have affected the
entire Abitibi region, including two significant workforce reductions
and redeployments. We have conducted extensive analysis and examination
of all of our options and have developed a comprehensive business and
financial plan which we are implementing at Sleeping Giant. It is our
intention to continue our operations through the optimization of our
assets to ensure long term sustainability for all our stakeholders and
the region. We have the support of our senior lender, our major
suppliers, and our employees. We will be providing updates as they
occur.
We will also be continuing discussions with our senior lender, our major
creditors and stakeholders to implement our ongoing business plan. We
will do everything we can to ensure that all stakeholders are treated
fairly in accordance with their legal entitlements and that no creditor
receives preferential treatment.
Cautionary Statement Regarding Forward-Looking Statements
This release and other documents filed by the Company 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 Company, business and financing plans, business trends and future
operating revenues. These statements are inherently uncertain and
actual achievements of the Company 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 TSXV 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 Company'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.
SOURCE Maudore Minerals Ltd.
