Mandalay Resources Corporation Announces Refinancing of Credit Facility
December 01 2022 - 7:26PM
Mandalay Resources Corporation (“Mandalay” or the “Company”) (TSX:
MND, OTCQB: MNDJF) is pleased to announce that it has entered into
a credit agreement with The Bank of Nova Scotia (“Scotiabank”)
providing for a senior secured revolving credit facility in an
aggregate amount of up to US$35 million (the “Revolving Credit
Facility”).
The initial drawdown under the Revolving Credit
Facility will be used to repay the Company’s existing syndicated
facility with HSBC Bank Canada and Macquarie Bank Limited (the
“Existing Facility”) which had US$32.6 million outstanding before
repayment. The residual proceeds from the Revolving Credit Facility
will be used for general corporate and working capital purposes.
The hedge arrangements entered into in connection with the Existing
Facility will remain in place until their expiry in June 2023.
The Revolving Credit Facility has a term of
three years and has no hedging requirements. The Company may cancel
any unused portion of the Revolving Credit Facility without penalty
at any time and may also prepay any portion of the loan without
penalty, subject to certain exceptions. In connection with the
Revolving Credit Facility, Scotiabank will hold security over the
majority of the Company’s material assets.
Dominic Duffy, President and CEO of Mandalay,
commented:
“We are extremely pleased to have accomplished
this refinancing with Scotiabank. The Revolving Credit Facility was
obtained at a reduced rate compared to that of the Existing
Facility and provides us with financial flexibility as it removes
the need for the US$28.8 million balloon payment that existed with
the Existing Facility which was due in March 2023. We look forward
to working with Scotiabank in the future which will contribute to
the long-term success of the Company.”
For Further Information:
Dominic DuffyPresident and Chief Executive
Officer
Edison NguyenDirector, Business Valuations and
Investor Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural
resource company with producing assets in Australia (Costerfield
gold-antimony mine) and Sweden (Björkdal gold mine), with projects
in Chile and Canada under care and maintenance, closure or
development status. The Company is focused on growing its
production profile and reducing costs to generate significant
positive cash flow.
Mandalay’s mission is to create shareholder
value through the profitable operation of both its Costerfield and
Björkdal mines. Currently, the Company’s main objective is to
continue mining the high-grade Youle vein at Costerfield, which
continues to supply high-grade ore, and also focus on extending
Youle’s Mineral Reserves at depth. At Björkdal, the Company will
aim to increase production from the Aurora zone in the coming
years, in order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release may contain "forward-looking
statements" within the meaning of applicable securities laws.
Readers are cautioned not to place undue reliance on
forward-looking statements. Actual results and developments may
differ materially from those contemplated by these statements. The
factors identified above are not intended to represent a complete
list of the factors that could affect Mandalay. A description of
additional risks that could result in actual results and
developments differing from those contemplated by forward-looking
statements in this news release can be found under the heading
“Risk Factors” in Mandalay’s annual information form dated March
31, 2022, a copy of which is available under Mandalay’s profile at
www.sedar.com. Although Mandalay has attempted to identify
important factors that could cause actual actions, events or
results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward
looking statements.
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