Maudore Minerals announces acquisitions for Windfall property, debt financing plans

3:02 pm by Carrie White

Maudore Minerals proposes two acquisitions that would result in a 100-per-cent ownership of the Windfall Lake property in Quebec and announces plans to secure debt financing.

Maudore Minerals (CVE:MAO) (OTC:MAOMF) Wednesday unveiled acquisition proposals related to the Windfall Lake project in Quebec, as well as its plans to secure $38.25 million in debt financing.

The company said it has made a proposal to acquire Eagle Hill Exploration Corp. (CVE:EAG), which owns 75 per cent of the Windfall Lake project in a joint venture with Noront Resources (CVE:NOT).

The Windfall Lake property is comprised of 366 contiguous claims in the Abitibi mineralized belt of northern Quebec – an area known for its gold and copper production.

Maudore said its proposal values each Eagle Hill common share at 17 cents based on the closing price of its stock on December 4, representing a 42-per-cent premium to the closing price of Eagle Hill's shares as at that date.

Once the deal closes, the current shareholders of Eagle Hill would own about 33.7 per cent of the merged company and the existing shareholders of Maudore would own roughly 66.3 percent.

The transaction with Eagle Hill works with Maudore’s other acquisition agreement with Noront, to acquire Noront's 25-per-cent interest in Windfall Lake for $10 million in cash plus three million warrants.

Under the terms of that deal, Maudore said it would, subject to certain conditions, pay Noront an additional amount in the event that it acquires Eagle Hill's interest in the Windfall Lake property.

In other news Wednesday, Maudore said it has signed a term sheet for a $35 million debt financing with a private equity firm and has received commitments from other parties for $3.25 million in bridge debt financing.

"These proposed transactions would collectively transform Maudore into a well-funded exploration and development company with 100 per cent ownership in two projects containing significant gold resources in one of the world's most prolific gold mining regions,” said president and CEO Dr. Howard Carr.

"This proposed financing is expected to provide Maudore with adequate funds and support to pursue our strategy of consolidation and of planning the development of the Comtois and Windfall Lake projects for early production."

Maudore Minerals also owns 100-per-cent of the Comtois gold project in Quebec. The current inferred mineral resource is 524,000 ounces of gold within 808,000 tonnes at 20.2 grams per tonne gold uncut.

Shares of the company were down 9.55 per cent as at about 3 p.m. EDT, trading at $1.99.