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TORONTO, Dec. 01, 2022 (GLOBE NEWSWIRE) — Mandalay Resource Corporation (“Mandalay” or the “Company”) (TSX: MND, OTCQB: MNDJF) is pleased to announce that it has entered into a credit agreement with a bank. increase. The State of Nova Scotia (“Scotiabank”) offers a senior secured revolving credit facility (“Revolving Credit Facility”) totaling up to US$35 million.
The first withdrawal under the Revolving Credit Facility will be used to repay an existing syndicated facility with HSBC Bank of Canada and Macquarie Bank Limited (the “Existing Facility”) which had an outstanding balance of US$32.6 million prior to repayment. Any remaining proceeds from the Revolving Credit Facility will be used for general corporate and working capital purposes. Hedging agreements entered into in connection with the existing facilities are in effect until their expiration in June 2023.
The Revolving Credit Facility has a three-year term and no hedging requirements. We may cancel the unused portion of the Revolving Credit Facility at any time without penalty, subject to certain exceptions, and may also prepay a portion of the loan without penalty. In connection with the Revolving Credit Facility, Scotiabank guarantees the majority of our significant assets.
Dominique Duffy, President and CEO of Mandalay, commented:
“We are very pleased to have successfully completed the refinancing with Scotiabank. It gives us financial flexibility by eliminating the need for a US$28.8 million balloon payment, which we had previously been paying, and we look forward to working with Scotiabank in the future to contribute to our long-term success.”
For more information:
President and Chief Executive Officer
Director, Business Evaluation and Investor Relations
About Mandalay Resources Corporation:
Mandalay Resources is a Canada-based natural resources 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, closed or under development. is. The company focuses on expanding 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 the Costerfield and Björkdal mines. Today, the company’s primary objective is to continue mining high-grade Yule prospects at Costerfield, which continues to supply high-grade ore, and is also focused on deepening Yule mineral reserves. I’m here. Björkdal aims to increase production from the Aurora Zone in the coming years in order to maximize profit margins from the mine.
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 deployment may differ materially from those envisioned in these statements. The factors above are not intended to represent an exhaustive list of factors that may affect Mandalay. A description of additional risks that could lead to actual results or developments that differ from those envisioned by the forward-looking statements in this news release is available in Mandalay’s Annual Information Form dated March 31, 2022. It’s listed under the heading ‘Risk Factors’. Available from his Mandalay profile at www.sedar.com. Although Mandalay has attempted to identify important factors that could cause its actual actions, events or results to differ materially from those set forth in the forward-looking statements, Mandalay’s actions, events or results are not anticipated. , estimated, or there may be other factors that cause it to differ from that 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.