Mahdia Gold Corp.

Mahdia Gold Corp.

December 12, 2013 16:09 ET

Mahdia Gold Corp. (CNSX:MGD) Announces Convertible Debenture Placement

TORONTO, ONTARIO--(Marketwired - Dec. 12, 2013) - Mahdia Gold Corporation (the "Company") (CNSX:MGD) is pleased to announce that it intends to raise gross proceeds of C$600,000.00 through a non-brokered private placement of units at a price of C$1,000 per unit, each unit consisting of C$1,000 face value of 15% convertible unsecured subordinated debentures (the "Debentures").

"These funds will ensure the start up of the joint venture, which is expected to commence in February 2014," said Andre J. Douchane, President & CEO.

The Debentures mature on December 31, 2015 (the "Maturity Date"), unless earlier redeemed (such early redemption available after December 31, 2014), and bear interest, accruing, calculated and payable semi-annually in arrears on June 30 and December 31 of each year. The Debentures are convertible at the holder's option into common shares of the Company, at any time prior to the close of business on the earlier of the business day immediately preceding the Maturity Date and the business day immediately preceding the date fixed for redemption of the Debentures, at a conversion price of C$0.06 per common share, being a ratio of approximately 16,666 Common Shares per C$1,000 principal amount of Debentures.

The Debentures rank subordinate in right of payment of principal and interest to all present and future senior obligations of the Company and rank pari-passu to all present and future unsecured indebtedness.

For additional information including a photo library showing the advancement of activities at the Omai mine site, please visit the Company's website at

About Mahdia Gold Corp.

Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.

The securities have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States.

Forward-Looking Statements

Information set forth in this news release may involve forward-looking statements under applicable securities laws. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this document are made as of the date of this document and the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. Although Management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. This news release does not constitute an offer to sell or solicitation of an offer to buy any of the securities described herein and accordingly undue reliance should not be put on such. Neither CNSX Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CNSX) accepts responsibility for the adequacy or accuracy of this release.

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