Malaga Inc news..MONTREAL, QUEBEC--(Marketwire - June 23, 2010) - (TSX:MLG) - Following the approval by the shareholders at the Annual Meeting of June 17, Malaga Inc. ("Malaga") announces the closing of the second tranche of a non-brokered private placement for total gross proceeds of $5.4 million. The second tranche amounts to gross proceeds of $2.6 million or 17.5 million common shares at a price of $0.15 as well as a warrant to purchase one common share ("warrant"). Each warrant could be redeemed into one common share of Malaga at $0.25 at any time until May 6, 2012. All of the securities issued in connection with the financing will be subject to a four month hold period from the date of issue of June 22, 2010.
The net proceeds of the financing will be used for the upgrade of the mill at Pasto Bueno, the installation of additional equipment to improve recoveries, exploration and resource definitional drilling activities and for general corporate purposes.
New Appointments to the Board of Directors
Two new experienced professionals were elected at the Annual Meeting of June 17 and are joining a group of seasoned directors, namely Me Rene Branchaud, Daniel Danis, P.Geo, Gilles Masson, C.A., R.Martin Wong, C.A. and Jean Martineau, President and CEO of Malaga.
Mr. Rejean Gourde is an experienced mining engineer with over 30 years of experience in the mining industry, namely 13 years in Guyana, French Guyana and Suriname, where he was leading all the open pit gold mining operations for Cambior. Mr. Gourde was previously general manager for Cambior's operations in the Val d'Or, Quebec area. More recently, he has been consulting for Semafo (optimization of gold mining operations in Niger and Guinea, and start-up of a gold mine in Burkina Faso) and for Orezone-Iamgold (Feasibility Study and construction of Essakane gold mine in Burkina Faso). He is a graduate of Ecole Polytechnique of Montreal in mining engineering.
Mr. Fernand Lefrancois was an accredited financial counsellor from 1985 until 2003 for several significant brokerage firms such as National Bank Financial (formerly Levesque, Beaubien) and McNeil Mantha (now part of RBC). He has a vast experience of capital markets and investor relations.
We thank Mr. Luc Filiatrault and Mr. Renald Marchand who are leaving the Board of Directors of Malaga.
ABOUT MALAGA INC.
Malaga Inc. owns the only operating tungsten mine in the Americas. Current tungsten concentrate production is approximately 7,500 MTUs per month and is expected to increase to above 9,500 MTUs, in the near future. Malaga also seeks diverse growth opportunities such as developing the hydroelectric potential of its Pasto Bueno property, through Hidropesac a joint venture with EPD (Emerging Power Developers - a subsidiary of Stucky S.A a worldwide Swiss company specialized in hydroelectric projects) in which Malaga holds 49% and through its 13.5% participation in Dynacor Mines.
