SWEDEN and CHILE – Mandalay Resources Corp
. of Toronto has entered into a bought deal agreement with BMO Capital Markets to raise gross proceeds of $35 million by issuing 30.44 million common shares at a price of $1.15 each.. The underwriter has also been granted the customary 15% over-allotment.
The net proceeds will be spent on metallurgical improvement projects at the Bjorkdal gold mine in Sweden and the Cerro Bayo gold-silver mine in Chile. Part of the proceeds will also be fund increased exploration at all of the company’s mines.
Mandalay said in the same news release that its previously issued 2016 production and cash cost guidance of 2.9 million to 3.3 million oz of silver, 100,000 to 115,000 oz of gold, 3,000 to 3,500 tonnes of antimony, at cash costs of US$690 to US$810 per AuEq oz remains unchanged.
More information about operation of the Bjorkdal and Cerro Bayo mines is posted at www.MandalayResources.com