Malaga Enters Into Loan Facility with a Peruvian Bank and Provides Update on Mining Operations
MONTREAL, QUEBEC--(Marketwire - Dec. 20, 2012) - Malaga Inc. ("Malaga" or the "Corporation") (TSX:MLG)(OTCQX:MLGAF) is pleased to announce that it has entered into a $2 million loan agreement with a Peruvian bank for a term of 36 months secured by the real estate in Lima. Proceeds in the amount of $1.5M was received today.
Malaga has entered into a contract to sell all the copper by-product it currently has at the Pasto Bueno mine. This transaction should be completed by the end of the current year. As well, Malaga reimbursed the $1.0M CDN note payable plus accrued interest on the maturity date, November 30, 2012, as part of its asset monetization program. Notwithstanding the above, the Corporation requires additional sources of funding before restarting the operations. As such, the Corporation is continuing its efforts to secure a permanent financing via debt or equity.
In addition, the Corporation is also pleased to announce that the repairs to the hydro-electric line and the transmissions poles that were damaged have been completed successfully.
"The repair of the hydro-electric line and the bank financing are the initial steps to get back into operations. The mine plan was reviewed and once we secure the necessary financing, we intend to restart production" said Pierre Monet, President and CEO. "We continue to work closely with our stakeholders to mitigate the consequences of suspending our operations".
This news release contains certain forward-looking statements or forward looking-information. These forward looking statements are subject to a variety of risks and uncertainties beyond the Corporation's ability to control or predict which could cause actual events or results to differ materially from those anticipated in such forward looking statements. Such risks and uncertainties are disclosed under the heading "Risk Factors" in the Corporation's Annual Information Form for the year ended December 31, 2011 and dated March 27, 2012. Further, forward-looking information is in addition based on various assumptions, including, without limitation, the expectation and beliefs of management, the assumed long term price of tungsten, that the Pasto Bueno property is a technical viable and economic operation and that the Corporation can access financing. Should one or more of these risks and uncertainties materialize, or should the underlying assumption prove incorrect or different, actual results may vary materially from those described in the forward-looking statements. The information provided reflects management's current expectations regarding future events and performance as of the date of this news release. Accordingly, readers should not place undue reliance on forward-looking statements.
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