Mandalay Resources Corporation Announces New US$40 Million Revolving Credit Facility and Change to Dividend Policy
(Thomson Reuters ONE) -
TORONTO, July 25, 2017 (GLOBE NEWSWIRE) -- Mandalay Resources Corporation
("Mandalay" or the "Company") (TSX:MND) announced today that it has entered into
a senior secured revolving credit facility with HSBC Bank Canada for up to US$40
million (the "Facility"). The Facility matures on July 24, 2020. Proceeds from
the Facility will be used for working capital, capital expenditures, permitted
acquisitions and other general corporate purposes.
Amounts drawn on the Facility will bear interest at LIBO plus 3.5%-4.5% per
annum or at HSBC's "base rate" plus 2.5%-3.5%, depending on the Company's
leverage ratio. The undrawn portion of the Facility is subject to a standby fee
of 1.0% per annum. The Facility is secured by a first ranking security interest
over substantially all of the Company's assets, excluding the Company's
Australian subsidiaries and its Costerfield mine and subject to permitted liens.
The Facility includes a number of customary positive and negative covenants,
including a prohibition on the payment of dividends by the Company without
HSBC's consent. As a result, in connection with entering into the Facility, the
Company has agreed to suspend its dividend until it has greater clarity on its
future cash flows, including the cost, timing and financial impact of restarting
its Cerro Bayo operations. Future payment of dividends will require HSBC's
consent as long as the Facility remains outstanding. Accordingly, the Company
cannot provide any assurance as to when and in what amounts (if at all) it will
be able to resume paying dividends. The board of directors of the Company will
evaluate the Company's financial position on an ongoing basis with a view to
potentially reinstating dividends when feasible.
Mark Sander, President and Chief Executive Officer of Mandalay, commented, "This
new revolving credit facility completes the planned restructuring of Mandalay's
debt, which began with the repurchase of $30 million of the 5.875% secured
exchangeable bonds issued by Gold Exchange Limited and an amendment of the terms
of the remaining $30 million that included an extension of the maturity date to
May 2022 (see press release of May 24, 2017). The combination of the re-set of
the exchangeable bonds and the new revolver increases our financial flexibility,
leaving the Company well-funded to maintain its capital investment program in
its existing mines and to provide excess working capital. It also will allow the
Company to act quickly on attractive acquisition opportunities that may arise."
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
dividend policy. 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
Unternehmensinformation / Kurzprofil:
Datum: 25.07.2017 - 15:19 Uhr
Sprache: Deutsch
News-ID 553796
Anzahl Zeichen: 5924
contact information:
Town:
Toronto
Kategorie:
Business News
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