Mandalay Resources Corporation Announces Sale of Cerro Bayo Mine to Equus Mining
12 Octobre 2021 - 1:55PM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) announced today that Equus Mining Limited
(“Equus”) (ASX:EQE) has exercised its option to purchase Mandalay’s
Cerro Bayo mine in Region XI, Southern Chile. Mandalay originally
granted Equus the option to purchase Cerro Bayo in October 2019,
pursuant to a binding option agreement (see Mandalay press release
dated October 8, 2019).
Pursuant to the transaction, which is scheduled
to be completed on December 1, 2021, Equus will acquire the Cerro
Bayo mine, including its mining properties, resources and mine
infrastructure as well as a 1,500 tonnes per day processing plant,
in exchange for 19% of Equus’ share capital and a 2.25% net smelter
royalty on production from the Cerro Bayo mining claims once the
mine has produced at least 50,000 ounces of gold equivalent,
subject to a re-purchase option in favour of Equus. Equus will also
assume 50% of approved site closure costs at Cerro Bayo, with
Mandalay responsible for the remaining 50%. Completion of the
transaction remains subject to the satisfaction of certain
conditions, including the receipt of Equus shareholder approval. In
addition, Equus will appoint Ryan Austerberry, Mandalay’s
Costerfield mine General Manager, to the Board of Equus as a
non-executive director representing Mandalay.
For Further Information:
Dominic DuffyPresident and Chief Executive
Officer
Edison NguyenManager, Analytics and Investor
Relations
Contact:647.260.1566
About Mandalay Resources
Corporation:
Mandalay Resources is a Canadian-based natural
resource 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, closure or
development status. The Company is focused on growing its
production profile and reducing costs to generate significant
positive cashflow.
Mandalay’s mission is to create shareholder
value through the profitable operation of both its Costerfield and
Björkdal mines. Currently, the Company’s main objective is to
continue mining the high-grade Youle vein at Costerfield, which
continues to supply high-grade ore, and also focus on extending
Youle’s Mineral Reserves at depth. At Björkdal, the Company will
aim to increase production from the Aurora zone in the coming
years, in order to maximize profit margins from the mine.
Forward-Looking Statements:
This news release contains "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 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 30, 2021, 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.
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