Malaga: US$5 million financing

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[{"type":"text","content":"\n\n\n\nMalaga Inc. (malaga)\n\n\nSymbol: MLG\n\n\nToronto Stock Exchange(TSX)\n\n\nMONTREAL, April 6 /CNW Telbec/ - Malaga Inc. (TSX: MLG) is pleased to\nannounce that it has closed the first tranche of a private placement (the\n"Private Placement") by the issuance of a 5-year US$1,300,000 principal amount\nsenior secured convertible promissory note (the "Note") to Global Tungsten &\nPowders Corp. ("GTP").\n\n\nThe Private Placement will be conducted in four tranches to be closed\nwithin the next four months, for total gross proceeds of US$3.8 million.\n\n\nSubject to certain conditions, Malaga can convert amounts due under the\nNote into common shares of Malaga with the prior written consent of GTP. In\naddition, GTP has the option to convert the Note into common shares of Malaga.\nIn both instances the conversion price would be equal to the volume weighted\naverage trading price of the common shares of Malaga on the Toronto Stock\nExchange for the ten trading days immediately preceding the date of the notice\nto be given by Malaga, less a discount of 15%. The Note is subject to a\nfour-month hold period.\n\n\nIn addition to the Private Placement, Malaga and GTP entered into a\nSupply Agreement in February, 2009 pursuant to which GTP made a US$1,200,000\nadvance to Malaga (the "Advance"). The Advance will be applied against\nMalaga's invoices over the last concentrates delivered by February, 2014.\n\n\nThe Notes issued under the Private Placement will bear interest at 12\nmonth LIBOR with an interest-free period for the initial twelve months.\n\n\nThe proceeds of the Private Placement and the Advance, which total\nUS$5,000,000, will be used for the purchase of machinery and equipment by\nMalaga's subsidiary, Dynacor Exploraciones del Peru S.A. ("Dynacor S.A.") and\nto fund further development of Dynacor S.A.'s operations at the Pasto Bueno\nMine.\n\n\nThe Private Placement is subject to the provision of certain related\nmaterial to the Toronto Stock Exchange.\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...

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