MONTREAL, May 22, 2013 /CNW Telbec/ - Maudore Minerals Ltd. ("Maudore" or, the "Company") (TSX-Venture: MAO) (US OTC: MAOMF) (Frankfurt Exchange: M6L) announces that further to the press release dated April 12, 2013, Maudore has decided to cease efforts to complete a second tranche of its brokered private placement of units, due to current market conditions.
The first tranche of the "best efforts" private placement closed on April 12, 2013 raising gross proceeds for the Company of $15.5 Million (see the Company's press release of April 12, 2013). The proceeds will be used to develop and expand existing projects and operations, working capital and for general corporate purposes.
"In April of this year, we raised in excess of $15 million, after having obtained a $22 million line of credit to fund the purchase of Aurbec Mines from North American Palladium Ltd. ("NAP"). These funds provide us with sufficient working capital to advance our operations. While the second tranche would have been beneficial, the intended use of proceeds was towards exploration and potential acquisitions, neither of which is a priority in this market environment. Our primary objective is to optimize our newly acquired operations within the context of a lower gold price environment and then start aggressively looking to expand the Sleeping Giant resource base.' said Kevin Tomlinson, Chairman.
"Our new incoming CEO, Greg Struble, officially begins on June 11th, however he has already begun working with me and the management team to develop plans for optimizing production at Vezza and Sleeping Giant with a focus on efficiency and cash flow generation.
"With Greg in place, Anne Slivitzky, our Interim COO, will be stepping down and will become a consultant to the Company. Anne has been a tremendous resource for Maudore as we transition from a pure exploration company to a junior producer. Anne has been associated with the company for many years and will continue to provide us with her valuable insight and extensive knowledge of the area and of our properties. I would like to thank Anne for her invaluable contribution during this transition period."
About Maudore Minerals Ltd.
Maudore is a Quebec junior gold company with more than 23 exploration projects, of which five are at an advanced stage of exploration with reported current and historical resources. The Company's projects span some 120 kilometers, east-west, of the underexplored Northern Volcanic Zone of the Abitibi Greenstone Belt and cover a total area of 144,000 hectares (1,440 km2) with the Sleeping Giant Processing Facility within trucking distance of key projects.
Quebec is consistently ranked amongst the best locations worldwide for mineral exploration and development, with low cost power, proper infrastructure, mining-oriented local communities and a skilled workforce.
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SOURCE Maudore Minerals Ltd.