MALAGA: US$5 MILLION FINANCING
MONTREAL, Apr 6, 2009 (Canada NewsWire via COMTEX News Network) -- Malaga Inc. (malaga) Symbol: MLG Toronto Stock Exchange(TSX) MONTREAL, April 6 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to announce that it has closed the first tranche of a private placement (the "Private Placement") by the issuance of a 5-year US$1,300,000 principal amount senior secured convertible promissory note (the "Note") to Global Tungsten & Powders Corp. ("GTP"). The Private Placement will be conducted in four tranches to be closed within the next four months, for total gross proceeds of US$3.8 million. Subject to certain conditions, Malaga can convert amounts due under the Note into common shares of Malaga with the prior written consent of GTP. In addition, GTP has the option to convert the Note into common shares of Malaga. In both instances the conversion price would be equal to the volume weighted average trading price of the common shares of Malaga on the Toronto Stock Exchange for the ten trading days immediately preceding the date of the notice to be given by Malaga, less a discount of 15%. The Note is subject to a four-month hold period. In addition to the Private Placement, Malaga and GTP entered into a Supply Agreement in February, 2009 pursuant to which GTP made a US$1,200,000 advance to Malaga (the "Advance"). The Advance will be applied against Malaga's invoices over the last concentrates delivered by February, 2014. The Notes issued under the Private Placement will bear interest at 12 month LIBOR with an interest-free period for the initial twelve months. The proceeds of the Private Placement and the Advance, which total US$5,000,000, will be used for the purchase of machinery and equipment by Malaga's subsidiary, Dynacor Exploraciones del Peru S.A. ("Dynacor S.A.") and to fund further development of Dynacor S.A.'s operations at the Pasto Bueno Mine. The Private Placement is subject to the provision of certain related material to the Toronto Stock Exchange. ABOUT MALAGA INC. Malaga Inc. is a tungsten mining company that uses modern, efficient and productive mining technology. The Company is committed to growth, through increasing its tungsten concentrate production, continuing the exploration of the Pasto Bueno property, and through strategic acquisitions. It also seeks diverse growth opportunities such as developing the hydroelectric potential of the Pasto Bueno property, through Hidropesac, in which the Company holds 44%, as well as through its holding in Dynacor Gold Mines Inc., in which the Company owns 13.3%. SOURCE: MALAGA INC. Jean Martineau, President & CEO, Malaga Inc., (514) 288-3224 Copyright (C) 2009 CNW Group. All rights reserved. |