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Mandalay Resources announces pricing of offering

The company said it has entered into an agreement with a group of underwriters to raise approximately C$43 million, as part of its previously announced offering
Mandalay has a number of projects, including the Costerfield gold-antimony mine in Victoria, Australia and the Björkdal gold mine in Northern Sweden

Mandalay Resources Corp (TSE:MND) (OTCMKTS:MNDJF) said Tuesday it has reached an agreement with a group of underwriters led by BMO Capital Markets, including CIBC Capital Markets and HSBC Securities to raise approximately C$43 million. The company said it was going to sell 358,400,000 subscription receipts at a price of C$0.12 each for gross proceeds of approximately C$43 million.

On Monday, the Canadian miner announced a public offering of up to approximately C$50 million, as well as a US$8 million convertible bridge loan from an affiliate of CE Mining.

READ: Mandalay Resources Corp to raise up to C$60 million

The company said it had also granted the underwriters an option to purchase up to an additional 53,760,000 subscription receipts to cover over-allotments, if any.

Mandalay has a number of projects, including the Costerfield gold-antimony mine in Victoria, Australia and the Björkdal gold mine in Northern Sweden.

According to the firm, funds are intended to fund working capital requirements, including development work at Costerfield, and tailings upgrade and capital requirements at Björkdal. Additionally, funds will be used for debt reduction, future planned exploration activities and for general corporate purposes.

Each subscription receipt will entitle the holder to receive one common share, subject to adjustment in certain circumstances. 

The public offering is expected to close February 20, 2019 and is subject to certain conditions, including necessary regulatory approvals and the company's receipt of the bridge loan.

Shares of Mandalay Resources were at $0.12 on Tuesday.

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February 20 2019

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