logo-loader
MiningGold & silver
Mandalay Resources Corp.

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

mine
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.

Quick facts: Mandalay Resources Corp.

Price: $1.21

Market: TSX
Market Cap: $110.16 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Mandalay Resources Corp. named herein, including the promotion by the Company of Mandalay Resources Corp. in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Mandalay Resources expecting busy year on projects in Australia and Sweden

Mandalay Resources (TSX-MND) President and CEO Dominic Duffy joined Steve Darling from Proactive Investors Vancouver to discuss the latest progress on two of their projects. Duffy discussing Costerfield in Australia and Bjorkdal in Sweden. Duffy telling Proactive what work they have...

on 25/6/19

2 min read