Agreement For Option To Acquire Cerro Bayo Mine in Chile

 

TORONTO, ON - Mandalay Resources Corporation has entered into a non-binding Heads of Agreement with Equus Mining whereby Equus has a 3-year period (Option 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.

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.

The company’s address is 76 Richmond Street East Suite 330, Toronto, ON M5C 1P1, www.mandalayresources.com.