Market conditions force Maudore to cancel private placement
TORONTO (miningweekly.com) – Adverse market conditions have forced gold producer Maudore Minerals to cancel a second tranche of its $25-million private placement, after raising $15.5-million in the first tranche in April.
The cancellation of the financing was not expected to affect operations, the company said on Wednesday.
The first tranche of the ‘best efforts’ private placement would be used to develop and expand the company’s existing projects and operations, working capital and for general corporate purposes.
"In April, 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. 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,” chairperson Kevin Tomlinson said.
He added Maudore’s main objective now was to optimise its newly acquired operations within the context of a lower gold price environment and then start aggressively looking to expand the Sleeping Giant resource base.
Meanwhile, Maudore incoming CEO Greg Struble officially assumes his position on June 11. He had already begun working with the management team to develop plans for optimising production at Vezza and Sleeping Giant, with a focus on efficiency and cash-flow generation.
Acting COO Anne Slivitzky would be stepping down and would become a consultant to the company.
Maudore’s TSX-V-listed stock climbed by 7.58% in value on Wednesday to trade at C$0.17 apiece.
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