TORONTO, Feb. 2 /CNW/ - Mandalay Resources Corporation ("Mandalay" or
the "Company") (TSX: MND, MND.WT) announced today that it has closed
the second tranche of two year debt facility totaling $10 million
senior secured credit facility with Sprott Resource Lending Partnership
("Sprott Lending") at an interest rate of 11% per annum.
In the second tranche, Mandalay received an additional $5 million
advance under the credit facility upon Sprott Lending receiving
perfected security interests in Mandalay's Cerro Bayo mine in Chile.
The credit facility is part of the $13.2 million in debt and equity
financing that the Company announced on December 3, 2010. The first
stage of that financing, a $3.2 million private placement of common
shares to Sprott Asset Management L.P. for and on behalf of certain
funds, was completed on December 14, 2010. As part of the first
tranche Mandalay received $5 million debt facility which was closed on
December 24, 2010.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with
producing and exploration assets in Australia and Chile. The Company is
focused on executing a roll-up 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.
SOURCE Mandalay Resources Corporation
For further information:
Chief Executive Officer
Company website: www.mandalayresources.com