/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
TORONTO, Sept. 9, 2014 /CNW/ - Mandalay Resources Corporation (TSX: MND)
("Mandalay") and a fund advised by West Face Capital Inc. ("West Face")
announced today the closing of the previously announced secondary
offering (the "Offering") by West Face of 40,000,000 common shares of
Mandalay (the "Common Shares") at a price of $1.10 per Common Share
(the "Offering Price") for gross proceeds to West Face of $44,000,000.
The Offering was completed on a bought deal basis and was underwritten
by BMO Capital Markets ("the Underwriter"). The Underwriter also
exercised its over-allotment option in full, resulting in the purchase
of an additional 6,000,000 Common Shares at the Offering Price and
thereby increasing the aggregate gross proceeds to West Face to
$50,600,000. West Face now holds 90,987,938 Common Shares, representing
approximately 26.6% of the outstanding Common Shares.1
The securities offered have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States absent registration or an applicable exemption from
the registration requirements. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall there
be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful.
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with
producing assets in Australia and 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 Australia and the Americas to generate
near-term cash flow and shareholder value.
About West Face Capital Inc.
West Face Capital Inc. is one of Canada's leading alternative investment
managers combining control-through-distressed, high-yield, negotiated
finance, proactive equity, and private equity activities. West Face's
capabilities are underpinned by a seasoned multi-disciplinary
investment team, proprietary origination channels, deep sector
expertise, and the ability to address investment targets in domestic
and international markets.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, including statements related to
the closing of the acquisition by Mandalay of Elgin Mining Inc. Readers
are cautioned not to place undue reliance on forward-looking
statements. Actual results and developments may differ materially from
those contemplated by these statements depending on, among other
things, changes in commodity prices and general market and economic
conditions. The factors identified above are not intended to represent
a complete list of the factors that could affect Mandalay. A
description of additional risks that could result in actual results and
developments differing from those contemplated by forward-looking
statements in this news release can be found under the heading "Risk
Factors" in Mandalay's annual information form dated March 28, 2014, a
copy of which is available under Mandalay's profile at www.sedar.com.
Although Mandalay has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
1 23.2% pro-forma the acquisition by Mandalay of Elgin Mining Inc.
(assuming the maximum amount of Common Shares to be issued) expected to
close on or about September 10, 2014.
SOURCE: Mandalay Resources Corporation
For further information:
Chief Executive Officer