Financing Size Increased to US$60 Million
TORONTO, May 14, 2014 /CNW/ - Mandalay Resources Corporation ("Mandalay"
or the "Company") (TSX:MND) is pleased to announce that it has
completed the 5.875% debt financing that was described in the Company's
press releases of April 23, 2014 and April 29, 2014.
The financing proceeds were raised by way of a concurrent offering of
senior exchangeable bonds (the "Bonds") issued by Gold Exchangeable
Limited (the "Issuer"), an unaffiliated special purpose vehicle
incorporated in Jersey. The Company, through its wholly owned
subsidiary Mandalay Resources Finance Limited, borrowed the proceeds of
the Bond offering from the Issuer under the terms of a loan agreement
and related funding agreement which together mirror the principal terms
of the Bonds.
The Bond offering was completed immediately prior to the closing of the
financing. As a result of additional demand for the Bonds following
pricing, the Bond offering raised US$60 million, a US$10 million
increase over the amount that was announced at pricing on April 29,
2014. Accordingly, the size of Mandalay's financing also increased to
US$60 million. Mandalay intends to use the net proceeds from the
financing for general corporate purposes.
Bradford Mills, CEO and Director of Mandalay, commented "Mandalay is
pleased to have completed this financing and to have successfully
increased the amount of funding between pricing and closing. These
funds give Mandalay flexibility to continue to pursue compelling growth
opportunities while also funding capital requirements associated with
our existing projects."
In connection with the completion of the financing, Mandalay has
cancelled its secured revolving corporate loan facility with Bank of
Montreal. No amounts were drawn under the loan facility at the time of
KNG Securities LLP acted as Lead Manager and sole Bookrunner in respect
of the offering of the Bonds.
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. 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.
This news release contains "forward-looking statements" within the
meaning of applicable securities laws, including statements regarding
the Company's intention to obtain the debt financing described above.
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
SOURCE: Mandalay Resources Corporation
For further information:
Chief Executive Officer