Mandalay Resources Corporation Completes Sale of Cerro Bayo Mine to Equus Mining
December 02 2021 - 7:30AM
Mandalay Resources Corporation ("Mandalay" or the "Company") (TSX:
MND, OTCQB: MNDJF) is pleased to announce that it has completed the
previously announced sale of its Cerro Bayo mine in Region XI,
Southern Chile (see Mandalay press releases dated October 12, 2021,
and October 8, 2019).
Pursuant to the transaction, Equus Mining
Limited (“Equus”) acquired 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 587,502,438
ordinary shares in the capital of Equus. Mandalay also retains 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, and
remains responsible for 50% of approved site closure costs at Cerro
Bayo. 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.
Dominic Duffy, President and CEO of Mandalay,
commented:
“Mandalay is pleased to have successfully
completed the sale of the Cerro Bayo mine to Equus. They are well
positioned to move Cerro Bayo forward and we look towards mutually
benefiting from the mine’s future developments.”
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). The Company is
focused on growing its production and reducing costs to generate
significant positive cashflow. Mandalay is committed to operating
safely and in an environmentally responsible manner, while
developing a high level of community and employee engagement.
Mandalay’s mission is to create shareholder
value through the profitable operation and continuing the regional
exploration program, at both its Costerfield and Björkdal mines.
Currently, the Company’s main objectives are to continue mining the
high-grade Youle vein at Costerfield, bring online the deeper
Shepherd veins, both of which will continue to supply high-grade
ore to the processing plant, and to extend Youle Mineral Reserves.
At Björkdal, the Company will aim to increase production from the
Aurora zone and other higher-grade areas 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. There
is no assurance that the proposed transaction will be completed on
the terms set out in this press release or at all. 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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