VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 31, 2014) - Elgin Mining Inc. ("Elgin Mining" or the "Company") (TSX:ELG) announced today that is has received, by way of the previously disclosed convertible bridge loan, approximately C$5 million from Mandalay Resources Corporation ("Mandalay") (TSX:MND).
Elgin Mining used the proceeds of the loan to repay its existing loan from Sprott Resource Lending Partnership and has now settled all outstanding reclamation obligations relating to its former coal operations in Kentucky.
The bridge loan bears interest at a rate of 10% per annum, has a term of six months, is convertible into Elgin Mining common shares at Mandalay's option at a price of C$0.157 per share, and is secured by, among other things, a pledge of all of the shares of Elgin Mining's Swedish subsidiaries (Bjorkdalsgruvan Aktiebolag and Bjorkdal Exploration AB).
Elgin Mining Inc.
Elgin Mining is a Canadian based company focused on production at the Bjorkdal gold mine in Sweden. In addition, Elgin Mining's portfolio includes the Lupin and Ulu gold projects located in Nunavut, Canada.
For further information, please visit the Company's web site at www.elginmining.com.
FOR FURTHER INFORMATION PLEASE CONTACT:
Elgin Mining Inc.Patrick Downey
President and Chief Executive Officer
(604) 682-3363 (FAX)
Source: Elgin Mining Inc.