TORONTO, July 4, 2012 /CNW/ - The results of the Company's Substantial
Issuer Bid which were announced today, July 4, 2012, have been amended
as a result of the acceptance of an additional 1,000,000 Series 7
warrants. These warrants were received prior to the expiry of the offer
at 5:00 p.m. on July 3, 2012 but were not accounted for. The complete
and updated version of the press release follows.
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX: MND,
MND.WT) announced today that it has completed its previously announced
warrant exchange offer (the "Exchange Offer"), pursuant to which
Mandalay offered to purchase all of its outstanding common share
purchase warrants (the "Warrants") in exchange for common shares
("Common Shares") based on the following exchange prices (the "Exchange
Prices"):
Warrant
Series
|
Description
|
Exchange Price
|
|
Series 2
|
Issued on August 6, 2010 with an exercise price of $0.33 and an expiry
date of August 6, 2012
|
0.58 Common Shares for each
Series 2 Warrant
|
|
Series 3
|
Issued on April 22, 2009 with an exercise price of $0.20 and an expiry
date of April 22, 2014
|
0.79 Common Shares for each
Series 3 Warrant
|
|
Series 4
|
Issued on July 22, 2009 with an exercise price of $0.20 and an expiry
date of July 22, 2014
|
0.79 Common Shares for each
Series 4 Warrant
|
|
Series 5
|
Issued on October 15, 2009 with an exercise price of $0.465 and an
expiry date of October 15, 2014
|
0.47 Common Shares for each
Series 5 Warrant
|
|
Series 6
|
Issued on November 30, 2009 with an exercise price of $0.31 and an
expiry date of November 30, 2014
|
0.63 Common Shares for each
Series 6 Warrant
|
|
Series 7
|
Issued on November 30, 2009 with an exercise price of $0.465 and an
expiry date of November 30, 2014
|
0.47 Common Shares for each
Series 7 Warrant
|
Bradford Mills, CEO of Mandalay noted, "We are delighted with the
success of this offer. Mandalay's fully diluted share count after the
completion of this offer now stands at 361,164,128 shares. This
represents an 8% reduction in fully diluted shares as a result of this
offer. This program, along with our continuing NCIB program
demonstrates our firm commitment to improving shareholder returns as
our mines complete their operational ramps ups and start delivering
significant cash flow."
The Exchange Offer expired at 5:00 p.m. on July 3, 2012. 67,297,777
Warrants were validly tendered (the "Tendered Warrants") to the
Exchange Offer, representing approximately 72% of the outstanding
Warrants of Mandalay. All Tendered Warrants were taken up promptly
following the expiry of the Exchange Offer, and an aggregate of
35,795,052 Common Shares will be issued in exchange for such Tendered
Warrants (based on the Exchange Prices) within three business days of
take-up.
After giving effect to the exchange, there will be 318,016,627 Common
Shares and 25,888,535 Warrants outstanding. These Warrants outstanding
are listed below by series.
Warrant
Series
|
Description
|
Number of Warrants
Outstanding
|
|
Series 2
|
Issued on August 6, 2010 with an exercise price of $0.33 and an expiry
date
of August 6, 2012
|
49,435
|
|
Series 3
|
Issued on April 22, 2009 with an exercise price of $0.20 and an expiry
date
of April 22, 2014
|
0
|
|
Series 4
|
Issued on July 22, 2009 with an exercise price of $0.20 and an expiry
date
of July 22, 2014
|
0
|
|
Series 5
|
Issued on October 15, 2009 with an exercise price of $0.465 and an
expiry date
of October 15, 2014
|
0
|
|
Series 6
|
Issued on November 30, 2009 with an exercise price of $0.31 and an
expiry date
of November 30, 2014
|
15,919,100
|
|
Series 7
|
Issued on November 30, 2009 with an exercise price of $0.465 and an
expiry date
of November 30, 2014
|
9,920,000
|
This press release is for information purposes only and is not an offer
to buy or sell or the solicitation of an offer to buy or sell any
Warrants or Common Shares.
About Mandalay Resources Corporation
Mandalay Resources is a Canadian-based natural resource company with
producing assets in Australia 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 and the Americas 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. 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, 2012, a copy of which is available under Mandalay's profile
at www.sedar.com. 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.