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Mandalay Resources Corp. T.MND

Alternate Symbol(s):  MNDJF

Mandalay Resources Corporation is a Canada-based natural resource company with producing assets in Australia (Costerfield gold-antimony mine) and Sweden (Bjorkdal gold mine). The Costerfield operation is located in Victoria, Australia, within the Costerfield mining district, approximately 10 km northeast of the town of Heathcote, Victoria. Youle and Shepherd are the main source of material for Costerfield. The Costerfield operation has a land package of approximately 1,219 hectares. The Bjorkdal operation is located within the Boliden mining district, approximately 28 km northwest of the municipality of Skelleftea and approximately 750 km north of Stockholm. The Bjorkdal mine produces ore from the Aurora zone underground mine, as well as from a stockpile of low-grade material accumulated over the course of its life of mine. The Bjorkdal operation has a land package of around 12,949 hectares. Its non-core properties include Lupin mines (Canada) and La Quebrada (Chile).


TSX:MND - Post by User

Bullboard Posts
Comment by Sherry35on Aug 13, 2019 1:37pm
75 Views
Post# 30022789

RE:RE:RE:2nd Q results are in

RE:RE:RE:2nd Q results are inCash and cash equivalents

As per the 2Q19 financial filing, "As at June 30, 2019, the Company hada total cash balance of $25,702,000(December 31, 2018 -$8,395,000). As part of the Bridge Loan agreement (see Note12(a)), the Company is required to maintain a reserve of cash or cash equivalents equal to the lessor of (a) $15,000,000 and (b) the outstanding principal amount of the five-yearexchangeable loan. The Company will use this reserve exclusively for the purposes of satisfying its obligations in respect of the five-yearexchangeable loan(see Note 10)"

With draw down on the remaing $5M of the revolver loan, this puts the cash balance at $30,702,000 as of July 15, 2019 and the revolver facility debt at $40M. Note $15M of the cash balance is in escrow - secured against the bridge loan.

Sourced from the investor presentation, "to the extent that the principal outstanding amount of the Gold Bonds is less than US$15M at anytime" would release the $15M in escrow (secured against the bridge loan). The last two payments to the Gold Bonds was Dec/18 and Jan/19. If MND could reduce the Gold Bonds princiapl to less than $15M in the next scheduled payments, this would release $15M from escrow to be used against the Revolver Facility.

The Gold Bonds' principal as of "June 30, 2019, there was a current liability of $22,235,000 recognised on the statement of financial position for the Loan." A $7.235M, or more, reduction in the gold bond would release $15M that could used to pay down the revolver debt. I hope this happens before "July 24th 2020" matures.

Bullboard Posts