TORONTO, Oct. 10, 2013 /CNW/ - Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) announced today that the Toronto Stock Exchange (the "TSX") has approved its notice of intention to renew its normal course issuer bid for a portion of its common shares ("Common Shares"). The normal course issuer bid will be made in accordance with the requirements of the TSX. Mandalay may begin to purchase Common Shares on October 17, 2013, subject to the Company's blackout policy, as described in its Timely Disclosure, Confidentiality and Insider Trading Policy. Purchases under Mandalay's prior NCIB totalled 2,164,100 as of October 3, 2013 and the weighted average price per security was CAD$0.8091. Purchases under the Mandalay NCIB dated October 17, 2011 to October 16, 2012 was 2,635,160 shares and the weighted average price per security was CAD $0.7492.
As of October 3, 2013, 323,706,553 Common Shares were outstanding. The average daily trading volume (the "ADTV") of Common Shares for the six month period beginning April 1, 2013 and ending September 30, 2013 was 179,958. Pursuant to the normal course issuer bid, Mandalay is permitted to acquire up to 16,185,328 Common Shares in the 12-month period commencing October 17, 2013 and ending on October 16, 2014, which represents 5% of the Common Shares issued and outstanding as of October 3, 2013. Purchases under the normal course issuer bid will be made by Mandalay through the facilities of the TSX and alternative Canadian trading systems and in accordance with applicable regulatory requirements. The price that Mandalay will pay for any Common Shares purchased under the normal course issuer bid will be the market price of such Common Shares at the time of acquisition. Pursuant to the TSX rules, the maximum number of Common Shares that may be repurchased during the same trading day is 44,990 Common Shares, which represents 25% of the ADTV, subject to Mandalay's ability to make one block purchase of Common Shares per calendar week that exceed such limits. Any Common Shares that are purchased under the normal course issuer bid will be cancelled upon their acquisition by Mandalay. Mandalay will fund purchases of Common Shares under the normal course issuer bid through available cash.
Brad Mills, CEO of Mandalay, commented, "We continue to believe that the repurchase of Mandalay's Common Shares presents a good use of existing cash resources in current market conditions and is in the best interests of Mandalay and its shareholders."
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with
producing assets in Australia and producing and exploration 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.
SOURCE Mandalay Resources Corporation