Maudore Reaches Agreement with Cyrus Capital for Additional Funding
Maudore Minerals announced it reached an agreement with Cyrus Capital Partners, in its capacity as a manager to FBC Holdings S.à.r.l, for additional funding to be made available by FBC to Maudore and to its wholly owned subsidiary Aurbec Mines.
Maudore and Aurbec had earlier reached agreements with FBC and with their other major creditors regarding the consensual restructuring of their debts. However, it became necessary to revise the terms of this consensual restructuring and to discontinue Maudore’s associated rights offering mainly as a consequence of the company having projected an increase in the time and development costs required for new stoping at the Sleeping Giant mine, elements that were not reflected in its initial payment schedules.
The primary driver for this change was the positive drill results obtained from ongoing underground diamond drilling being conducted. The company successfully achieved its initial drilling plan goals and exceeded new ounce growth targets. However, the majority of these new ounces were revealed to be proportionally in the deeper levels of the mine. As a consequence, additional mine development and extended ramp up time is needed for these new stoping areas to reach positive cash-flows, resulting in a significant change to the overall financing needs of the company in order to bridge its operations to that point.
The company continues to work towards a revised consensual restructuring of its debts in order to arrive at a sustainable financing plan for developing the full potential of the Sleeping Giant mine. As an important first step in this regard, the company has reached an agreement with FBC which provides it with access to additional funding to be applied towards this goal.
Maudore is a Quebec-based junior gold company in production, with mining and milling operations as well as more than 22 exploration projects.