Wednesday, March 4, 2009

Global Tungsten & Powders reaches supply agreement with Malaga

Monday, Malaga Inc. (MLG.TO: News ) said it signed supply agreement with Global Tungsten & Powders Corp. for the sale of its tungsten ore concentrates produced by the company's subsidiary at Pasto Bueno mine, Huaura plant in Peru.

The supply agreement provides for a monthly minimum quantity of tungsten ore to be acquired by Global Tungsten from Malaga until February 2014. Further, the agreement provides that Global Tungsten shall pay Malaga in advance a sum of US$1.2 million within thirty days of the execution of the supply agreement, to be applied against Malaga's invoices over the last concentrates delivered by February 2014.

As part of the deal, Global Tungsten has undertaken to finance Malaga for an amount of US$3.8 million, through the issuance by Malaga to Global Tungsten of 5-year convertible secured promissory notes

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