JOHANNESBURG (miningweekly.com) – TSX-listed exploration junior MDN has started “reorganising” its exploration activities and future development of its Québec-based Crevier niobium/tantalum project owing to continued restricted access to capital, said chairperson Serge Savard on Monday.
The mining exploration and development company aimed to focus its exploration efforts and funds solely on its Tanzania-based assets such as the Ikungu gold project.
The group would hand over all the responsibilities, including that of funding, of the Crevier project to Crevier Minerals Incorporated (CMI), in which MDN held a 72.5% stake. Iamgold Corporation subsidiary Niobec held the remaining 27.5% interest.
“We will very carefully use a portion of our cash to continue exploring in Tanzania, but MDN will no longer provide funding for the Crevier project development, which will now come from other sources,” Savard said in a statement.
This would enable the group to “better allocate” its current human and financial resources and reduce overall administrative expenses. Savard commented that MDN’s payroll, including directors' compensation, had been cut by 40% during the third quarter.
MDN reported holding $3.5-million in cash and no debt as at December 31.
The company also embarked on a management restructure.
MDN and CMI president and CEO Serge Bureau would step down from his leadership duties at MDN, effective February 1, to focus solely on the development activities of CMI. Bureau would remain a director of MDN.
MDN VP for exploration Marc Boisvert would be appointed MDN president, CEO and director as of February 1. MDN CFO Yves Therrien and a team of experienced Tanzanian geologists and technicians assigned exclusively to exploration in Tanzania would provide support to Boisvert.