Malaga Inc. (malaga)
Toronto Stock Exchange(TSX)
MONTREAL, April 6 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to
announce that it has closed the first tranche of a private placement (the
"Private Placement") by the issuance of a 5-year US$1,300,000 principal amount
senior secured convertible promissory note (the "Note") to Global Tungsten &
Powders Corp. ("GTP").
The Private Placement will be conducted in four tranches to be closed
within the next four months, for total gross proceeds of US$3.8 million.
Subject to certain conditions, Malaga can convert amounts due under the
Note into common shares of Malaga with the prior written consent of GTP. In
addition, GTP has the option to convert the Note into common shares of Malaga.
In both instances the conversion price would be equal to the volume weighted
average trading price of the common shares of Malaga on the Toronto Stock
Exchange for the ten trading days immediately preceding the date of the notice
to be given by Malaga, less a discount of 15%. The Note is subject to a
four-month hold period.
In addition to the Private Placement, Malaga and GTP entered into a
Supply Agreement in February, 2009 pursuant to which GTP made a US$1,200,000
advance to Malaga (the "Advance"). The Advance will be applied against
Malaga's invoices over the last concentrates delivered by February, 2014.
The Notes issued under the Private Placement will bear interest at 12
month LIBOR with an interest-free period for the initial twelve months.
The proceeds of the Private Placement and the Advance, which total
US$5,000,000, will be used for the purchase of machinery and equipment by
Malaga's subsidiary, Dynacor Exploraciones del Peru S.A. ("Dynacor S.A.") and
to fund further development of Dynacor S.A.'s operations at the Pasto Bueno
The Private Placement is subject to the provision of certain related
material to the Toronto Stock Exchange.
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.,