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
<p> <br/> Bradford Mills<br/> Chief Executive Officer </p> <p> Greg DiTomaso<br/> Investor Relations </p> <p> Contact:<br/> 647.260.1566 </p>