TORONTO, ONTARIO AND LONDON, ENGLAND, Sept. 16, 2011 /CNW/ - Plinian
Capital Ltd. ("Plinian") and Mandalay Resources Corporation
("Mandalay") (TSX: MND) (TSX: MND.WT) announced today that Plinian has
acquired an additional 24,687,960 common shares of Mandalay,
representing approximately 9.1% of the 269,840,325 outstanding common
shares of Mandalay.
After giving effect to the transaction, Plinian owns 31,354,627 common
shares of Mandalay, representing approximately 11.6% of the total
outstanding common shares of Mandalay. The principal shareholders of
Plinian are Brad Mills, Mark Sander and Sanjay Swarup (collectively,
"Senior Management"), each of whom is a senior officer of Mandalay. Mr.
Mills and Mr. Swarup are also directors of Mandalay. After giving
effect to the transaction, and including the shares held by Plinian,
Senior Management collectively owns or controls 35,638,769 common
shares of Mandalay, representing approximately 13.2% of the total
outstanding common shares of Mandalay, as well as options and warrants
(including warrants held by Plinian) to acquire an additional
14,102,229 common shares of Mandalay.
Plinian acquired the Mandalay common shares from Western Coal Corp.
("WCC", a wholly-owned subsidiary of Walter Energy, Inc.) pursuant to
the terms of an option and right of first refusal agreement dated
September 25, 2009 between WCC and Plinian. The purchase price paid by
Plinian for the shares was $6,171,990, or $0.25 per share.
Plinian acquired the Mandalay common shares for investment purposes.
Depending on market and other conditions, Plinian and/or Senior
Management may, from time to time, increase or decrease their
ownership, control or direction over the common shares or other
securities of Mandalay.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with
production 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