TORONTO and VANCOUVER, British Columbia, July 31, 2014 /PRNewswire/ --
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.
For further information:
Bradford Mills
Chief Executive Officer
Greg DiTomaso
Investor Relations
Contact:
+1-647-260-1566
(MND.)