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Maritime Resources Corp
Symbol C : MAE
Shares Issued 86,406,449
Close 2018-04-16 C$ 0.115
Recent Sedar Documents

Maritime advises holders to take no action on offer

2018-04-16 10:27 ET - News Release

Mr. Doug Fulcher reports

MARITIME RESOURCES ADVISES SHAREHOLDERS TO TAKE NO ACTION REGARDING UNSOLICITED OFFER

Maritime Resources Corp. has advised shareholders that there is no need to take action at this time regarding the unsolicited offer made by Anaconda Mining Inc.

After the initial offer was submitted to the company by Anaconda on Jan. 29, Maritime retained McMillan LLP as special legal counsel, and Dundee Securities Ltd. as financial advisers. The board of directors, together with its legal and financial advisers, will thoroughly evaluate Anaconda's offer as well as consider and evaluate other strategic alternatives that may become available to Maritime to maximize shareholder value.

Additionally, as required by applicable securities laws, the board will issue a directors' circular that will contain important information for shareholders, including the board's recommendation regarding the offer. The directors' circular will also be filed on SEDAR and with Canadian securities regulators.

About Maritime Resources Corp.

Maritime Resources holds 100 per cent of the Green Bay property, located near Springdale, Nfld. The property hosts the past producing Hammerdown gold mine and the Orion gold deposit, separated by a 1.5-kilometre distance that sits within an overall strike length of 4,000 metres.

Maritime announced a prefeasibility study (March 2, 2017) that evaluated the measured and indicated National Instrument 43-101 mineral resource estimate for the past-producing Hammerdown gold deposit. The study was completed by WSP Canada Inc., an independent third party engineering firm, with the mandate to evaluate the potential of bringing the past-producing gold mine back into commercial production.

Prefeasibility highlights:

  • Project pretax net present value of $71.2-million with an internal rate of return of 46.8 per cent;
  • Project after-tax net present value of $44.2-million with an internal rate of return of 34.8 per cent;
  • Net pretax cash flow of $104-million, undiscounted. Net after-tax cash flow of $69-million, undiscounted;
  • Cash cost to produce an ounce of gold is $558 with an all-in sustaining cost (including capital, sustaining capital and operating cost) of $955 per ounce of gold;
  • Mine life for the current plan at Hammerdown is five years, producing approximately 174,000 ounces at an average of approximately 35,000 ounces per year;
  • Basic assumptions used for the compilation of the PFS: gold price of $1,250 (U.S.) per ounce;
  • Exchange rate of 80 U.S. cents:$1 (Canadian) (or $1 (U.S.):$1.25 (Canadian));
  • Project discount rate of 8 per cent;
  • Mill recovery of 97 per cent based on the historic treatment of the ore at the nearby Nugget Pond gold mill from 2000 to 2004.

The Hammerdown gold deposit was successfully mined by Richmont Mines between 2000 and 2004 while gold prices averaged $325/ounce. During its operation, a total of 291,400 tonnes of ore were mined and milled, at an average grade of 15.83 grams per tonne gold, recovering a total of 143,000 ounces of gold at an eight g/t cut-off. All of the ore was processed at the Nugget Pond mill, now owned and operated by Rambler Metals and Mining Canada Ltd., with an average gold recovery of 97.1 per cent. Mining terminated in 2004 due to low gold prices with extensive gold mineralization remaining, although uneconomic at that time.

The Orion gold deposit consists of two main vein systems, both of which are open along strike, and down plunge to the northeast.

Bernard H. Kahlert, PEng, is the qualified person as defined by National Instrument 43-101 and has reviewed and approved the technical disclosure contained in this release.

Further information on the Green Bay gold property can be found on its website along with the NI 43-101 compliant technical report and prefeasibility report filed on SEDAR.

We seek Safe Harbor.

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