Salazar Resources Limited press release
Mandalay Advances Bridge Loan to Elgin Mining
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Zinc · Canada
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TORONTOand VANCOUVER, July 31, 2014/CNW/ - Mandalay Resources Corporation ("Mandalay") (TSX: MND) announced today that it has advanced, by way of the previously disclosed convertible bridge loan, approximately C$5 millionto Elgin Mining Inc. ("Elgin") (TSX: ELG).
Elginused the proceeds of the loan to repay its existing loan from Sprott Resource Lending Partnership ("Sprott") and has now settled all outstanding reclamation obligations relating to its former coal operations in Kentucky.
The bridge loan bears interest at a rate of 10% per annum, has a term of six months, is convertible into Elgincommon shares at Mandalay's option at a price of C$0.157per share, and is secured by, among other things, a pledge of all of the shares of Elgin's Swedish subsidiaries (Björkdalsgruvan Aktiebolag and Björkdal Exploration AB).
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australiaand producing and development projects in Chile. Mandalay is focused on executing a rollup strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australiaand the Americas to generate near-term cash flow and shareholder value.
SOURCE Mandalay Resources Corporation
Bradford Mills Chief Executive Officer
Greg DiTomaso Investor Relations
Contact: 647.260.1566
Copyright CNW Group 2014
Earlier from Salazar Resources Limited
- Mandalay Resources Provides Update on Elgin Mining Transaction and Enters into Amended and Restated Arrangement Agreement
- Mandalay Resources continues infill and extensional drilling on N- and Cuffley lodes at its Costerfield gold-antimony mine, Victoria, Australia
- Mandalay Resources Corporation Announces Production and Sales Results for the Second Quarter, 2014