NR Out - MND grants Equus Mining option to buy Cerro Bayo Mandalay grants Equus Mining option to buy Cerro Bayo
2019-06-26 07:56 ET - News Release
Mr. Dominic Duffy reports
MANDALAY RESOURCES CORPORATION ANNOUNCES NON-BINDING HEADS OF AGREEMENT WITH EQUUS MINING FOR THE OPTION TO ACQUIRE THE CERRO BAYO MINE IN CHILE
Mandalay Resources Corp. has entered into a non-binding heads of agreement with Equus Mining whereby Equus has a three-year period to explore at the 29,495-hectare Cerro Bayo mine district in Region XI, southern Chile. The Heads of Agreement contemplates an Option Period in which Equus can exercise its option to acquire all the issued share capital of Compania Minera Cerro Bayo Ldta. ("CMBC"), including its mining properties, resources and mine infrastructure at Cerro Bayo, as well as the 1,500 tpd processing plant, which is currently on care and maintenance. The Heads of Agreement has a condition that at 18 months both parties have the right to terminate the agreement.
Should Equus exercise its option to acquire CMBC, consideration to Mandalay consists of:
the issue to Mandalay of 19% of Equus' share capital; and
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.
In addition, Equus will assume 50% of the approved site closure costs at Cerro Bayo.
Completion of the transaction is subject to a number of conditions precedent, including execution of definitive agreements in respect of the transaction, third-party consents, and the approval by the Board of Directors of both companies.
About Mandalay Resources Corporation:
Mandalay Resources is a Canadian-based natural resource company with producing assets in Australia and Sweden, and care and maintenance and development projects in Chile. The Company is focused on growing production at its gold and antimony operation in Australia, and gold production from its operation in Sweden to generate near term cash flow.
We seek Safe Harbor.