Canadian mining company Mandalay Resources Corp. will bag up to 50 million Canadian dollars ($37.8 million) in a marketed public offering.

Mandalay Resources will use the net funds to finance working capital requirements, debt reduction, future planned exploration activities at high potential opportunities and for general corporate purposes.

The company will also get a $8 million convertible bridge loan from an affiliate of CE Mining Fund III LP., an investment fund advised by Plinian Capital Ltd.

CE Mining will also invest up to $12 million in Mandalay's public offering.