Business
Malaga Inc. announces the execution of an agreement for the sale of its tungsten ore concentrates and of a term sheet for a US$3.8 million financing
Malaga Inc. (malaga) Symbol: MLG Toronto Stock Exchange(TSX)
About this update from M3 Metals Corp.
[{"type":"text","content":"\n\n\n\nMalaga Inc. (malaga)\nSymbol: MLG\nToronto Stock Exchange(TSX)\n\n\nMONTREAL, March 2 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to\nannounce that it has entered into a supply agreement with Global Tungsten &\nPowders Corp. ("GTP") for the sale of its tungsten ore concentrates produced\nby Malaga's subsidiary at the Pasto Bueno mine, Huaura plant in Peru (the\n"Supply Agreement").\n\n\nThe Supply Agreement provides for a monthly minimum quantity of tungsten\nore to be acquired by GTP from Malaga until February 2014. It provides also\nthat GTP shall pay Malaga in advance a sum of US$1,200,000 within thirty (30)\ndays of the execution of the Supply Agreement, to be applied against Malaga's\ninvoices over the last concentrates delivered by February 2014.\n\n\nAs part of the Supply Agreement, GTP has undertaken to finance Malaga for\nan amount of US$3,800,000 (the "Financing"), through the issuance by Malaga to\nGTP of 5-year convertible secured promissory notes (the "Notes"). The Notes\ncan be converted into common shares of Malaga upon the occurrence of certain\nevents with the prior written consent of GTP at a price equal to the volume\nweighted average trading price of the common shares of Malaga on the Toronto\nStock Exchange (the "TSX") for the ten trading days immediately preceding the\ndate of the notice to be given by Malaga, less a discount of 15%.\n\n\nThe closing of the Financing is scheduled no later than March 31, 2009.\nThe Financing is subject to approval by the TSX. The Notes will be subject to\na four-month hold period.\n\n\nThe proceeds of the Financing will be used for the purchase of machinery\nand equipment by Malaga's subsidiary, Dynacor Exploraciones del Perú S.A.\n("Dynacor S.A.") and to fund further development of Dynacor S.A.'s operations\nat the Pasto Bueno mine.\n\n\nABOUT MALAGA INC.\n\n\nMalaga Inc. is a tungsten mining company that uses modern, efficient and\nproductive mining technology. The Company is committed to growth, through\nincreasing its tungsten concentrate production, continuing the exploration of\nthe Pasto Bueno property, and through strategic acquisitions. It also seeks\ndiverse growth opportunities such as developing the hydroelectric potential of\nthe Pasto Bueno property, through Hidropesac, in which t...