MDN Inc.

March 27, 2013 10:02 ET

MDN Reports Its Financial Results for the Fiscal Year Ended December 31, 2012

MONTREAL, QUEBEC–(Marketwire – March 27, 2013) – MDN Inc. (“MDN”) (TSX:MDN) is pleased to report its financial results for the fiscal year ended December 31, 2012. The management discussion and analysis and the annual report will be available on the Company’s website ( and on SEDAR (

The Company is reporting a net loss attributable of $12,862,510 or $0.127 per share to owners of the Company, compared to net income of $1,675,414 or $0.016 per share for the same period in 2011. The change was mainly due to the write-off of prospecting and exploration and evaluation assets and a drop in royalties from the Tulawaka mine.

As at December 31, 2012, the Company was debt-free and had cash assets of $4.4 million.


Year ended December 31 2012 2011
(In thousands of CAN dollars, except per share amounts)
Total revenues net of financial expenses $ 278 $ 6,330
Administrative expenses $ 2,201 $ 2,781
Write-off of prospecting and exploration and evaluation assets $ 8,743 $
Management fees $ 619 $ 739
Net income (loss) attributable to owners of the Company $ (12,863 ) $ 1,675
Basic and fully diluted net income (loss) per share $ (0.127 ) $ 0.016
Number of shares outstanding (‘000) 101,527 99,681


In 2013, the Company plans to continue developing its assets so as to create more long-term value for its shareholders.

Today, with the Nikonga and Ikungu East gold discoveries, the advanced Ikungu project to be financed by Metalinvest, and the Crevier project that is headed for the feasibility study stage, the Company is confident that MDN has a solid for the development of its assets in the coming years.

With the arrival of Metalinvest, which is to invest at least $3 million in the Ikungu project by year-end, 2013 is lining up to be an interesting year. MDN itself will invest $1 million in exploration on its wholly-owned Ikungu East and Nikonga properties.

Ikungu: a gold zone 2 km long by 300 m deep

Work on the project Ikungu will begin with geophysical surveys in the second quarter of 2013, with the aim of identifying concentrations of disseminated sulphides along the Ikungu structure. These surveys may also identify other gold zones on the property. Mapping has already revealed other metasediment horizons with gold occurrences in the northern part of the property. Drilling will begin at the end of the second quarter to test the extensions at depth of the mineralized zones identified in 2010 and 2011.

Ikungu East: 15 km of ground to explore

Wholly-owned by MDN, the Ikungu East property covers a 133 km2 area and is the eastern extension of the volcanic belt hosting the Ikungu gold zone. The work program will be aimed at locating drill targets of similar quality to those at Ikungu. Mapping, geophysical surveying and soil sampling are planned for 2013.

Nikonga: a new discovery in Tanzania

Work in 2012 led to the drill discovery of new gold zones based on intersections in holes NKD-02 (10.87 g/t Au over 4.9 m and 12.3 g/t Au over 4.2 m) and NKD-05 (9.88 g/t Au over 4.2 m).

In 2012, MDN obtained the prospecting license to the west of the discovery, which opens up more than seven kilometres to the west of the gold-bearing horizon to exploration. In the first three quarters of 2013, MDN will do the basic work required to identify drill targets on the western extension. Results to date suggest similarities with the Timmins camp, one of the most prolific gold mining camps in Canada.

Crevier: continued development

The higher tantalum demand and prices seen in the past two years are positive developments for the Crevier project.

Based on the results of metallurgical testing done in 2012, the Company plans to modify the base scenario of the 2010 preliminary economic assessment to maximize the economic parameters.

In 2013, the Company will continue to seek strategic and financial partner. Funding for the Crevier project development will no longer be provided by MDN equity financings, as future development will be funded through Crevier Minerals Inc., a private company in which MDN holds a 72.5% interest.

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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, 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.