MONTREAL, QUEBEC--(Marketwired - May 10, 2013) - MDN Inc. ("MDN") (TSX:MDN) is pleased to announce its financial results for the first quarter ended March 31st, 2013. The interim financial report and management discussion and analysis will be posted on Monday May 13th, on the Company's website (www.mdn-mines.com) and on SEDAR (www.sedar.com).
A net loss of $ 499,757 or $ 0.005 per share was recorded for the first quarter of 2013, compared to a net loss of $ 1.6 million or $ 0.016$ per share for the same period in 2012. The variation is mainly attributable to the write-off of evaluation and exploration assets in 2012, coupled with lower administration expenses in 2013. As of March 31, 2013, the Company had cash assets of $ 3,4 million.
Summary of operating results
| For the period ended March 31 | 2013 | 2012 | ||
| (In thousands of dollars, except for amounts per share) | ||||
| Total revenues net of financial charges | $9 | ($51 | ) | |
| Administrative expenses | $398 | $700 | ||
| Write-off of evaluation and exploration assets | $- | $947 | ||
| Management fees related to the Tulawaka mine | $137 | $193 | ||
| Net loss attributable to the shareholders of the company | ($500 | ) | ($1,637 | ) |
| Basic and diluted net loss per share | ($0.005 | ) | ($0.016 | ) |
| Number of shares outstanding (in thousands) | 101,527 | 101,527 |
Exploration in Tanzania
Ikungu: one of the most advanced gold projects in Tanzania
On February 20, 2013, the Company signed an agreement with Metalinvest Capital Corporation ("Metalinvest"), and in accordance with this agreement, a management committee consisting of two representatives each of MDN and Metalinvest was set up in March. A US $3 million work program for 2013 was presented to and approved by the committee. Metalinvest was required to deposit the funds required to cover the expenditures for the first half of 2013 within days of the approval of the exploration program to maintain its option; it was unable to do so, and asked for an extension until May 13, which MDN granted.
Ikungu East: Volcanic belt discovered in 2012
In 2012, prospecting work by MDN led to the discovery of a previously-unknown 15-km long volcanic belt that constitutes the eastern extension of the major Ikungu mineralized zone. MDN acquired 133 km2 of mining lands covering the volcanic belt, and controls 100% of the property.
In the first quarter of this year, detailed mapping was carried out over a 40 km2 area to cover the two main gold anomalies detected by soil geochemistry surveys conducted in 2012. A total of 2,242 outcrops were described and 192 structural measurements were taken. This data, which is now being analysed, will allow for a better understanding of the 2012 geochemistry results, and processing and interpretation of the results will provide a basis for the identification of exploration targets along the 15-km volcanic belt discovered in 2012.
Nikonga: Discovered by drilling in 2012
The 2012 discovery at Nikonga was the outcome of two drilling programs on the Nikonga property, which is wholly-owned by MDN. The discoveries were identified by the following intersections:
| NKD-02: | 12.3 g/t Au over 4.2 m |
| 10.9 g/t Au over 4.9 m | |
| NKD-05: | 9.9 g/t Au over 4.2 m |
| NKD-04: | 17.3 g/t Au over 1.1 m |
MDN acquired the Nikonga property, located 40 km southeast of the Tulawaka mine, in 2010. The property consists of two prospecting licenses covering a total of 51 km2.
In the first quarter of this year, a ground magnetic survey was conducted over the western part of the property. The survey, which totalled 108 km of lines, supplemented the survey done over the eastern part of the property in 2012. Processing of the magnetic data from the 2012 and 2013 programs is now underway and is expected to be completed in the second quarter. All this new data will be used in the planning of the induced polarization geophysics program to be carried out in the second half of the year.
Crevier project development
In the first quarter of 2013, the Company received COREM's final flotation report, which confirmed that it was possible to obtain an overall recovery of 62.8% for the flotation circuit, and to produce a concentrate with a grade of 9.6% niobium and tantalum. This 62.8% recovery is acceptable and considered normal for this type of ore.
Since February, Mr. Serge Bureau is devoted exclusively to Crevier Minerals Inc. as President. Mr. Bureau's mandate for the near term is to find a partner for the project and secure the funds necessary to complete the feasibility study. On February 1st 2013, Marc Boisvert, Ing formely Vice President, Exploration of MDN, was appointed President, Chief Executive Officer and a director of MDN.
During the first quarter, the Company met with various financial organization as well as potential strategic partners. These meetings led to the signature of confidentiality agreements.
MDN has completed all of its obligations to ensure its 72,5% interest in the Crevier project. Following the addition of the metallurgical work to be done, it was decided to temporary suspend the feasibility study during the research for funding.
Marc Boisvert, geological engineer, Vice President, Exploration, and a qualified person under National Instrument 43-101 has reviewed the technical and scientific information in this news release.
About MDN
MDN Inc. (TSX:MDN) is a mining exploration and development company with projects in Quebec and Tanzania. The Tulawaka gold mine is an agreement between MDN (30% participating interest) and Pangea Goldfiels inc. (70%), a subsidiary wholly owned by ABG, whom manages projects through its subsidiary Pangea Minerals Ltd. All information concerning Tulwaka is based on the information provided by ABG. MDN Inc. also owns a 72.5% interest in Crevier Minerals Inc., which possesses a compliant to Canadian standard, NI 43-101 niobium-tantalum resource in the Lac-Saint-Jean area of Quebec.
Forward-Looking Statements Other than statements of historical fact, all statements in this release that address events or developments that the Company expects to occur are forward-looking statements. Although the Company believes that the expectations expressed in such forward-looking statements are based on reasonable assumptions, including, but not limited to, investment by Metalinvest of the amounts required in exploration expenditures to acquire an interest in the Ikungu property, including the $3,000,000 planned for 2013. Such statements are not guarantees of future performance, and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements are discussed in greater detail in the Company's most recent Annual Information Form filed on SEDAR, which also provides additional general assumptions in connection with these statements. Investors and others who base themselves on the Company's forward-looking statements should carefully consider the factors mentioned in the Annual Information Form as well as the uncertainties they represent and the risk they entail. The Company believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct, and as such, the forward-looking statements in this press release should not be unduly relied upon. These statements speak only as of the date of this press release.
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Contact Information:
President and Chief Executive Officer
MDN Inc.
514 866-6500 Ext. 221
mboisvert@mdn-mines.com
www.mdn-mines.com