MONTREAL, Nov. 14, 2013 /CNW Telbec/ - On October 15th, Maudore Minerals Ltd. (MAO: TSX-Venture; MAOMF: US OTC; M6L: Frankfurt Exchange) announced that it had entered into agreements for
the consensual restructuring of current debts with Cyrus Capital
Partners ("Cyrus"), in its capacity as a manager to FBC Holdings
S.à.r.l ("FBC"), as well as with the major unsecured creditors at both
Maudore and its operating subsidiary Aurbec Mines Inc. (the "Consensual
Restructuring"), and that certain aspects of the Consensual
Restructuring were subject to the approval of the TSX Venture Exchange
(the "Exchange").
In order to comply with the requirements of the Exchange, Maudore and
Cyrus have agreed to certain minor modifications to the terms of the
restructuring of the $22 million secured term loan (the "Credit
Facility") granted by FBC. The restructuring of the Credit Facility
may now be summarized as follows:
-
FBC will make available a new liquidity facility of up to $6 million,
bearing interest at 15% per annum, payable quarterly in arrears in cash
and having a maturity date of one year following closing, provided,
however, that the Company will be required to immediately repay to FBC
up to a maximum of $2 million of any tax refunds received from the
Province of Quebec;
-
$3 million of the existing Credit Facility will be converted into an
equivalent amount of 5% convertible debentures having a three year
maturity and convertible at FBC's option into an aggregate of
25 million common shares, based on a conversion price of $0.12 per
share;
-
FBC will allow the Company to access funds available in the interest
escrow account established pursuant to the Credit Facility, with the
net proceeds to be applied to pay approximately $0.5 million as a
pre-payment premium and to pay or prepay, as the case may be,
approximately $2.8 million of interest expenses relating to the Credit
Facility which is due or coming due up to June 30, 2014;
-
FBC will commit to subscribe for not less than its proportionate share
of the Company's previously announced $4.72 million rights offering
(the "Rights Offering"), representing aggregate gross proceeds to the
Company of not less than approximately $725,000; and
-
In consideration of this restructuring, the Company will issue 8,888,888
common shares to FBC.
In connection with the Rights Offering, members of the senior management
of the Company have reiterated their commitment to exercise the rights
to be received by them in order to subscribe for an aggregate of
$300,000 worth of common shares.
The implementation of the Consensual Restructuring remains subject to
the final approval of the Exchange.
Greg Struble, the President and Chief Executive Officer of Maudore,
further announced today that Kevin Tomlinson has advised the Board of
Directors that he intends to step down from the Board upon completion
of the Consensual Restructuring. In making this announcement, Mr.
Struble remarked that "Kevin has been instrumental in the transition of
the Company from purely exploration into a fully operational producer.
His stewardship during this transition has been essential in building
the team and moving the Company forward through some of the most
difficult times for commodity prices as well as a collapse in the
public markets for shares of junior mining companies. He will redirect
his time with Maudore in an advisory consultant role as required. With
his strong structural geology background, Kevin will initially focus on
the further development of the new resource potential currently
underway at the Sleeping Giant Mine as well as Maudore's additional
prospects."
Mr. Tomlinson said, "I am incredibly proud to have been part of a most
enthusiastic, dedicated and positive team during these very trying
times. Executing this restructuring programme in the current
environment has taken exceptional effort by everyone and with its
completion and the funding that has been arranged, plus the proving up
of extensions to the high-grade veins at Sleeping Giant, the future for
Maudore is assured. Given the importance of unravelling the complex
geology in the immediate term, I would like to concentrate my efforts
delineating extensions to the high-grade veins at Sleeping Giant which
we have now proven to exist and on the discovery of further gold
resources in our significant land holdings in the Northern Abitibi."
The Board has accepted Mr. Tomlinson's decision and will consider
candidates to fill the role of Chairman over the coming weeks.
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 Company'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
1,570 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 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.
