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Plinian Capital increases investment in Mandalay Resources Corporation

^{Published on 2011-09-16 13:02:20 - Market Wire}
 

TORONTO, ONTARIO AND LONDON, ENGLAND, Sept. 16, 2011 /CNW/ - Plinian Capital Ltd. ("Plinian") and Mandalay Resources Corporation ("Mandalay") (TSX: MND) (TSX: MND.WT) announced today that Plinian has acquired an additional 24,687,960 common shares of Mandalay, representing approximately 9.1% of the 269,840,325 outstanding common shares of Mandalay.

After giving effect to the transaction, Plinian owns 31,354,627 common shares of Mandalay, representing approximately 11.6% of the total outstanding common shares of Mandalay. The principal shareholders of Plinian are Brad Mills, Mark Sander and Sanjay Swarup (collectively, "Senior Management"), each of whom is a senior officer of Mandalay. Mr. Mills and Mr. Swarup are also directors of Mandalay.  After giving effect to the transaction, and including the shares held by Plinian, Senior Management collectively owns or controls 35,638,769 common shares of Mandalay, representing approximately 13.2% of the total outstanding common shares of Mandalay, as well as options and warrants (including warrants held by Plinian) to acquire an additional 14,102,229 common shares of Mandalay.

Plinian acquired the Mandalay common shares from Western Coal Corp. ("WCC", a wholly-owned subsidiary of Walter Energy, Inc.) pursuant to the terms of an option and right of first refusal agreement dated September 25, 2009 between WCC and Plinian.  The purchase price paid by Plinian for the shares was $6,171,990, or $0.25 per share.

Plinian acquired the Mandalay common shares for investment purposes.  Depending on market and other conditions, Plinian and/or Senior Management may, from time to time, increase or decrease their ownership, control or direction over the common shares or other securities of Mandalay.

About Mandalay Resources Corporation:

Mandalay Resources is a Canadian-based natural resource company with production and exploration assets in Australia and Chile. The Company is focused on executing a roll-up strategy, creating critical mass by aggregating advanced or in-production gold, copper, silver and antimony projects in Australia and the Americas to generate near-term cash flow and shareholder value.