Mandalay Advances Bridge Loan to Elgin Mining
TORONTO and VANCOUVER, July 31, 2014 /CNW/ - Mandalay Resources Corporation ("Mandalay") (TSX: MND) announced today that it has advanced, by way of the previously disclosed convertible bridge loan, approximately C$5 million to Elgin Mining Inc. ("Elgin") (TSX: ELG).
Elgin used the proceeds of the loan to repay its existing loan from Sprott Resource Lending Partnership ("Sprott") and has now settled all outstanding reclamation obligations relating to its former coal operations in Kentucky.
The bridge loan bears interest at a rate of 10% per annum, has a term of six months, is convertible into Elgin common shares at Mandalay's option at a price of C$0.157 per share, and is secured by, among other things, a pledge of all of the shares of Elgin's Swedish subsidiaries (Björkdalsgruvan Aktiebolag and Björkdal Exploration AB).
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. Mandalay is focused on executing a rollup 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