Mandalay Resources Corp. officials have announced the acquisition of Vancouver-based Elgin Mining Inc. and its primary Björkdal gold asset for $70 million; this makes the Swedish mine Mandalay’s No. 3 producing asset.

The operation features a mechanized underground and open-pit mine with an automated processing plant producing gold concentrate and flotation gold concentrate. Elgin’s 2014 production guidance for Björkdal is up to 49,000 gold oz.

“Mandalay’s strategy to acquire cash-flowing assets in stable and mining-supportive jurisdictions can make a material difference,” said Mandalay CEO Brad Mills. “The Björkdal mine is ideal coupled with Mandalay’s design and execution experience.”

With Q1 and Q2 forecasts complementing current guidance, Toronto-headquartered Mandalay representatives anticipate full 2014 production increases totaling between 152,000 to 167,000 gold oz.