Mawson West Closes Financing and Debt Restructuring Package

PERTH, AUSTRALIA--(Marketwired - Dec. 19, 2014) -

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Highlights:

• C$5 million private placement by Mawson West of 41.67 million shares at a price of C$0.12 per share to the Galena Private Equity Resources Fund LP;
• US$10 million secured loan facility from Galena to Mawson West, repayable in September 2017, with interest of 12% per annum, with 75.76 million warrants exercisable at C$0.15 issued to Galena;
• US$5 million unsecured bridge loan from Galena to Mawson West, repayable on or before 28 February 2015, with interest of 12% per annum, with 7.58 million warrants exercisable at C$0.15 issued to Galena;
• Galena to backstop Mawson West by agreeing to purchase additional shares for a minimum of C$8.64 million and up to C$21.6 million at a price of C$0.12 per share under contemplated future financing efforts by Mawson West; and
• Maturity Date of the Trafigura Prepayment Facility extended by 9 months to June 2017, US$19m in repayments deferred and flexibility of proceeds account structure increased to assist with cashflow.

Mawson West Limited (TSX:MWE) ("Mawson West" or "the Company") is pleased to announce that the Company has completed portions of its previously announced transaction with Galena Private Equity Resources Fund LP ("Galena"), whereby Galena has provided the Company with an immediate US$19.3 million in financing. Galena has also agreed, subject to certain conditions, to back-stop future additional financing efforts by Mawson West by subscribing for additional shares of Mawson West for a minimum of C$8.64 million and up to C$21.6 million. The total gross proceeds raised following completion of the additional financing will be approximately US$33.4 million. In addition, Galena's affiliate entity Trafigura Pte Ltd. ("Trafigura"), the Company's current offtaker and senior lender, has provided additional financial assistance to the Company through amendments to its Prepayment Facility with Trafigura and an extension to the term of its offtake agreement with Trafigura.