Malaga Inc. (malaga)
Toronto Stock Exchange(TSX)
MONTREAL, June 26 /CNW Telbec/ - Malaga Inc. ("Malaga" or the "Company")
(TSX: MLG) today announced the terms of a rights offering to existing
shareholders to raise gross proceeds of up to approximately $3.43 million (the
"Offering"). The Company will be offering to eligible holders of its
outstanding common shares of record as at the close of business on July 8,
2009 (the "Record Date") approximately 137 million rights (each, a "Right") to
subscribe for up to approximately 34.3 million common shares of the Company
(each, a "Common Share") on the terms set forth in a rights offering circular
(the "Circular") to be mailed by the Company to shareholders (and which will
also be available on SEDAR). Each such holder will receive one Right for each
Common Share held on the Record Date. Four Rights will entitle the holder to
purchase one Common Share at a price of $0.10. The Rights will expire at 5:00
p.m. (Montréal time) on August 5, 2009. Shareholders who exercise all of their
Rights will also be entitled to acquire additional Common Shares pursuant to
an additional subscription privilege to be provided for under the Offering,
the terms of which are described in the Circular.
Net proceeds of the Offering will be approximately $3.33 million,
assuming that all of the Rights are exercised. The Company intends to use the
proceeds of the Offering towards the development of the Pasto Bueno Property,
including exploration and development of the Pasto Bueno mine and improvement
of the mill and the balance, for general corporate purposes.
The Rights will be listed on the Toronto Stock Exchange (the "TSX") and
are expected to commence trading on July 6, 2009. The TSX has also approved
the listing of the Common Shares issuable upon exercise of the Rights. The
Common Shares of the Company will commence trading "ex-rights" on July 6,
The Rights and underlying Common Shares are not being offered to, and the
Rights may not be exercised by, persons who are residents of any jurisdiction
other than each of the provinces and territories of Canada. Reference is made
to the section in the Circular entitled "Ineligible Shareholders".
No placement agent was used for this transaction.
This press release is not an offer to sell nor the solicitation of an
offer to buy any securities of the Company.
THE SECURITIES WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF
1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES
ABSENT REGISTRATION UNDER OR AN APPLICABLE EXEMPTION FROM THE REGISTRATION
REQUIREMENTS OF THE 1933 ACT.
ABOUT MALAGA INC.
Malaga Inc. is a tungsten mining company that uses modern, efficient and
productive mining technology. The Company is committed to growth, through
increasing its tungsten concentrate production, continuing the exploration of
the Pasto Bueno property, and through strategic acquisitions. It also seeks
diverse growth opportunities such as developing the hydroelectric potential of
the Pasto Bueno property, through Hidropesac, in which the Company holds 44%,
as well as through its holding in Dynacor Gold Mines Inc., in which the
Company owns 13.3%.
For further information:
For further information: Jean Martineau, President & CEO, Malaga Inc.,