Malaga Inc. (TSX:MLG,OTCQX:MLGAF) entered into a $2 million loan agreement with a Peruvian bank for a term of 36 months secured by the real estate in Lima. Malaga is in receipt of the amount of $1.5M.
As quoted in the press release:
Malaga has entered into a contract to sell all the copper by-product it currently has at the Pasto Bueno mine. This transaction should be completed by the end of the current year. As well, Malaga reimbursed the $1.0M CDN note payable plus accrued interest on the maturity date, November 30, 2012, as part of its asset monetization program.
Malaga President and CEO Pierre Monet said:
The repair of the hydro-electric line and the bank financing are the initial steps to get back into operations. The mine plan was reviewed and once we secure the necessary financing, we intend to restart production” said “We continue to work closely with our stakeholders to mitigate the consequences of suspending our operations.