MONTREAL, QUEBEC -- (Marketwired) -- 05/10/13 -- 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 $700Write-off of evaluation and exploration assets $- $947Management fees related to the Tulawaka mine $137 $193Net 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.
