Mandalay Resources Corporation is pleased to announce that it has entered into a credit agreement with The Bank of Nova Scotia providing for a senior secured revolving credit facility in an aggregate amount of up to US$35 million.
The initial drawdown under the Revolving Credit Facility will be used to repay the Company’s existing syndicated facility with HSBC Bank Canada and Macquarie Bank Limited (the “Existing Facility”) which had US$32.6 million outstanding before repayment. The residual proceeds from the Revolving Credit Facility will be used for general corporate and working capital purposes. The hedge arrangements entered into in connection with the Existing Facility will remain in place until their expiry in June 2023.
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The Revolving Credit Facility has a term of three years and has no hedging requirements. The Company may cancel any unused portion of the Revolving Credit Facility without penalty at any time and may also prepay any portion of the loan without penalty, subject to certain exceptions. In connection with the Revolving Credit Facility, Scotiabank will hold security over the majority of the Company’s material assets.
Dominic Duffy, President and CEO of Mandalay, commented:
“We are extremely pleased to have accomplished this refinancing with Scotiabank. The Revolving Credit Facility was obtained at a reduced rate compared to that of the Existing Facility and provides us with financial flexibility as it removes the need for the US$28.8 million balloon payment that existed with the Existing Facility which was due in March 2023. We look forward to working with Scotiabank in the future which will contribute to the long-term success of the Company.”
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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 cash flow.
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