NASDAQ OMX

Mandalay Resources Corporation Announces Completion of Revised Repurchase Offer and Consent Solicitation in Respect of 5.875% Secured Exchangeable Bonds

Dela

TORONTO, May 24, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:MND) announced today that Gold Exchange Limited ("GEL"), an unaffiliated special purpose vehicle incorporated in Jersey, has entered into agreements with respect to a revised repurchase offer (the "Repurchase") and consent solicitation (the "Consent Solicitation") in respect of its U.S.$60,000,000 principal amount 5.875% secured exchangeable bonds due 2019 (the "Bonds").

GEL issued the Bonds in 2014 and loaned the proceeds to a subsidiary of the Company pursuant to the terms of a loan agreement and related funding agreement (the "Loan") which together mirror the principal terms of the Bonds.

As indicated in Mandalay's press release of May 12, 2017, the original repurchase offer and consent solicitation that GEL launched in respect of the Bonds on April 19, 2017 (the "Original Proposed Transaction") was not completed. However, GEL subsequently entered into discussions with Bondholders with respect to implementing alternative arrangements in respect of the Bonds substantially similar to the Original Proposed Transaction. The holders of 100% of the Bonds have now executed a written resolution approving the Repurchase and Consent Solicitation on the same terms as the Original Proposed Transaction except that the interest rate payable on the Bonds has been increased from 5.875% per annum to 6.875% per annum effective as of May 13, 2017. In addition, GEL has agreed to pay each Bondholder a fee equal to 1.0% of the aggregate principal amount of the Bonds held by it that are not repurchased pursuant to the Repurchase.

Pursuant to the Repurchase, GEL has agreed to purchase US$29,950,000 principal amount of the Bonds from the holders thereof at a price of 105% of their principal amount, plus accrued and unpaid interest at the rate of 6.875% per annum for the period from (and including) May 13, 2017 to (but excluding) May 26, 2017. The Repurchase is expected to be completed on May 26, 2017.

In connection with the Consent Solicitation, the following amendments have been made to the terms of the Bonds:

  • extending the maturity date of the Bonds to May 13, 2022;
     
  • deleting a condition of the Bonds that required that beginning on May 14, 2017, as additional security for the Bonds, GEL was required to start depositing into a custody account, the aggregate number of shares of the SPDR Gold Trust issuable upon exchange of the Bonds;
     
  • adding a new covenant to the Bonds pursuant to which GEL will be required to offer to repurchase a proportion of the Bonds outstanding at the relevant time if and to the extent that the contained gold equivalent (in ounces) at Mandalay's Costerfield mine falls below (initially) 232,000 gold equivalent ounces;
     
  • increasing the interest rate payable on the Bonds from 5.875% per annum to 6.875% per annum; and 
     
  • reducing the exchange price of the Bonds from US$149.99 to US$135.00.

Mandalay is required to fund any amounts required by GEL to repurchase Bonds pursuant to the Repurchase and all associated fees and expenses (including consent fees). The outstanding amount of the Loan has been reduced by an amount equal to the principal amount of the Bonds repurchased pursuant to the Repurchase and the terms of the Loan have been amended to mirror, where applicable, the amendments to the terms of the Bonds.

Mark Sander, President and Chief Executive Officer of Mandalay, commented, "We are pleased to have completed the revised repurchase transaction with GEL. This revised repurchase agreement lowers our overall cost of debt service going forward, while also reducing the Company's leverage and maintaining its debt net of cash position of nearly zero. Removing the escrow provision on the loan is advantageous for the Company as it allows us full use of our cash for value-adding investments going forward.  The updated agreement extends the maturity for the balance of the loan out an additional three years, to 2022. With the repurchase completed, we have increased our capacity to fund growth through acquisitions or internal capital projects with an optimized mix of cash, debt, or equity."

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia, Sweden and producing and exploration projects in Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia, the Americas and Europe to generate near-term cash flow and shareholder value.

Forward-Looking Statements:

This news release contains "forward-looking statements" within the meaning of applicable securities laws, including statements regarding the Company's production of gold, silver and antimony for the 2017 fiscal year. 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 depending on, among other things, changes in commodity prices and general market and economic conditions. 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, 2017, a copy of which is available under Mandalay's profile at www.sedar.com. In addition, there can be no assurance that any inferred resources that are discovered as a result of additional drilling will ever be upgraded to proven or probable reserves. 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.

For Further Information:

Mark Sander
President and Chief Executive Officer 

Greg DiTomaso
Director of Investor Relations 

Contact: 
647.260.1566

 

This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Mandalay Resources Corporation via Globenewswire

Om

NASDAQ OMX
NASDAQ OMX



Följ NASDAQ OMX

Skriv in din e-postadress så får du ett mejl när vi har något nytt att berätta.

Senaste pressmeddelandena från NASDAQ OMX

Concurrent Achieves Sales Milestone for Zephyr Transcode19.10.2017 15:35Pressmeddelande

Concurrent Customers Now Transcoding on Three Continents ATLANTA, Oct. 19, 2017 (GLOBE NEWSWIRE) -- Concurrent (NASDAQ:CCUR), a global leader in storage, protection, transformation, and delivery of visual media assets, announced today that Zephyr Transcode, which Concurrent launched last year as an integral part of its content delivery network (CDN) solutions, is now deployed with customers in Asia, Europe and North America. The deployments already support thousands of on-demand assets being transcoded to multiple formats and bit-rates to support any place, any device content availability. Zephyr Transcode supports multiple formats and quality levels including H.264 (MPEG-4) and H.265 (HEVC), strengthening Concurrent customers' capability to provide high-quality standards-based streams to any device their end-users desire. Zephyr Transcode is software-based and capable of running in traditional Central Processing Units (CPU) as well as Gra

German Armed Forces Renews Contract for Hexagon Geospatial Products19.10.2017 15:11Pressmeddelande

Defense agency will work closely with Hexagon Geospatial Premium Partner for next two years NORCROSS, Ga., Oct. 19, 2017 (GLOBE NEWSWIRE) -- At the HxGN LOCAL Defense Summit, a conference dedicated to defense and security in Western Europe, Hexagon Geospatial announced that the Bundeswehr Geoinformation Centre (BGIC) recently renewed a large software maintenance contract for Hexagon Geospatial products. The two-year renewal is for more than 100 licenses, mainly within the GeoMedia and ImageStation product families. The contract also includes consulting for workflow optimization. The contract was issued to Geosystems, a Hexagon Geospatial Premium Partner, which will work closely with the local subsidiary of Hexagon Safety & Infrastructure in Bonn and Munich to support BGIC. "The strong Hexagon Geospatial partner network allows our defense customers to benefit from a unique pool of expertise and tradecraft in the areas of remote sensing, GIS, and photog

Novel Preclinical Research Tools Provide Humanized Immune Response to Advance Immunotherapeutic Development, Live Webinar Hosted by Crown Bioscience19.10.2017 14:00Pressmeddelande

SANTA CLARA, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Crown Bioscience, a wholly-owned subsidiary of Crown Bioscience International (TWSE:ticker 6554) and a global drug discovery and development services company providing translational platforms to advance oncology, inflammation, cardiovascular and metabolic disease research, announces a live webinar to be presented by Dr. Michelle Mack, Director of Global Scientific Engagement, entitled "Beyond Syngeneics - Novel Tools for Addressing Human Specificity in Immuno-Oncology." Checkpoint inhibitors like anti-PD-1, anti-PD-L1, and anti-CTLA-4 have revolutionized cancer treatment and have recently gained approval in several cancer types. Despite their potential, immunotherapies face significant development challenges due to the specificity and complexity of the human immune system upon which they act. Crown Bioscience has generated innovative research models to address these obstacles early during preclinical drug development.

Perfectus Aluminum Inc. Responds to Trade Group19.10.2017 13:00Pressmeddelande

ONTARIO, Calif., Oct. 19, 2017 (GLOBE NEWSWIRE) -- Perfectus Aluminum Inc. has issued the following: On October 12, 2017 the Aluminum Extruders Council (AEC), an industry group representing largely American aluminum extruders, posted to its blog a false narrative regarding a suit to which Perfectus Aluminum Inc. is a related party. The government is not "seeking unpaid duties from Perfectus for goods brought into the country." Rather, the government is attempting to use a 2017 Department of Commerce determination to assess retroactive antidumping duties on goods imported as early as 2011. It is discouraging that AEC would tout such an obviously egregious government overstep as a "victory" to their members and the industry: were it one of AEC's own members facing such an obvious violation of fair play and due process, it would rightfully argue that government overreach is a threat to manufacturers everywhere. In addition to the hypocrisy of the AEC's promotion of this case, its s

Stillfront Group AB: Stillfront one of Sweden's fastest growing companies19.10.2017 11:00Pressmeddelande

PRESS RELEASE   October 19, 2017   Stillfront included in Deloitte Sweden Technology Fast 50  Stillfront has been included in Deloitte Sweden Technology Fast 50. Deloitte Sweden Technology Fast 50 is a ranking of Sweden's 50 fastest growing technology companies, based on revenue growth over the last four years. The ranking includes public and private companies, large and small, in all areas of technology, from internet specialists to biotech, digital media technology to life sciences, computers to semiconductors and software to telecommunications. Please find more detailed information (in Swedish) on www.deloitte.se/fast50. Stillfront has since the IPO in the autumn of 2015 recorded a continuous high and profitable growth in revenues rolling 12 months. Since the IPO, Stillfront has increased the number of so-called core products (i.e. games that have more than 5 MSEK in annual revenue rate) from four to fourteen and the number of studi

Stillfront Group AB: Stillfront ett av Sveriges snabbast växande teknikföretag19.10.2017 11:00Pressmeddelande

PRESSMEDDELANDE   2017-10-19   Stillfront med i Deloitte Sweden Technology Fast 50 Stillfront har kommit med i Deloitte Sweden Technology Fast 50 2017. Deloitte Sweden Technology Fast 50 är en ranking av Sveriges 50 snabbast växande teknologiföretag, baserat på tillväxten i nettoomsättningen de senaste fyra åren. Rankingen inkluderar såväl publika som privata bolag och omfattar all typ av teknologi, från mjuk- och hårdvara till life science, kommunikation och clean technology. Mer information finns på: www.deloitte.se/fast50. Stillfront har sedan noteringen hösten 2015 varje kvartal uppvisat en kontinuerlig hög och lönsam intäktstillväxt rullande 12 månader. Stillfront har sedan noteringen ökat antalet så kallade kärnprodukter (dvs spel som omsätter mer än 5 MSEK i årstakt) från fyra till fjorton och antalet studios har ökat från fyra till åtta. "Stillfront har åtnjutit en enastående tillväxt de senaste åren. Vår tillväxt bygger på vår s

I vårt pressrum kan du läsa de senaste pressmeddelandena, få tillgång till pressmaterial och hitta kontaktinformation.

Besök vårt pressrum