This new financing will provide us with sufficient capital to fund the completion of plant construction and mining start-up at our Zaruma Gold Project, without affecting our other aggressive development and exploration activity and plans.
Vancouver, BC (PRWEB) September 26, 2007
As announced last week, Dynasty Metals & Mining Inc. (TSX: DMM, the "Company") has entered into an agreement with Cormark Securities Inc., pursuant to which Cormark has agreed to purchase, on a "bought deal" basis, 1,200,000 common shares of the Company at a price of $8.25 per share for gross proceeds of $9,900,000, subject to regulatory approval.
The Company is debt-free with 27,782,187 shares outstanding and has approximately $12 million in cash, prior to the new financing. Company President, Robert Washer, commented: "This new financing will provide us with sufficient capital to fund the completion of plant construction and mining start-up at our Zaruma Gold Project, without affecting our other aggressive development and exploration activity and plans."
The Zaruma Gold Project:
The Company is developing its Zaruma Gold Project, with production expected to commence in the first quarter of 2008. Approximately 100 men are working on underground exploration and the construction of the main access decline in the Ana Michele (Cabo de Hornos) area. The underground exploration program is aimed at expanding veins and stockworks that are included in mine design forecasts and at identifying new veins.
In addition, a small pilot plant is processing bulk samples of up to 20 tonnes of ore a day using ore that is being stockpiled from mine development activity. For further details, please refer to the Company's news releases dated June 12, 2007 and July 18, 2007, available at http://www.sedar.com.
An Independent Preliminary Assessment of the Zaruma Gold Project, announced by the Company on July 12, 2006, estimated a 14.5 year mine life with annual production of approximately 100,000 ounces of gold from the Company's current resources at Zaruma.
Quality Control and Assurance:
The preparation of the technical information contained in this news release was supervised by Pippa Jeffcock, a member of the Geological Society (London) and a "qualified person" as defined by National Instrument 43-101.
About Dynasty Metals & Mining:
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.
The Company has two advanced-stage projects, Jerusalem and Zaruma, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the Dynasty Goldfield, the Copper Duke Project and the Marianna Joint Venture among other prospects.
Dynasty Metals & Mining Inc.
Robert Washer, President and CEO
For further information please visit the Company's website at http://www.dynastymining.com or
Dynasty Metals & Mining Inc.
Tel: (604) 687-0888
Brisco Capital Partners Corp.
Tel: (403) 262-9888
This news release includes "forward-looking information", as such term is defined in applicable securities laws. The forward-looking information includes, without limitation, statements relating to the economic feasibility of, and the nature and timing of mine construction and mining operations at, the Company's Zaruma Gold Project; and other similar statements concerning anticipated future events, conditions or results that are not historical facts. These statements reflect management's current estimates, beliefs, intentions and expectations; they are not guarantees of future performance.
The Company cautions that all forward-looking information is inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company's control. Such factors include, among others, risks and uncertainties relating to exploration and development; the ability of the Company to obtain additional financing; the Company's limited operating history; the need to comply with environmental and governmental regulations; political and economic instability and general civil unrest in Ecuador; potential defects in title to the Company's properties; fluctuations in currency exchange rates; fluctuating prices of commodities; operating hazards and risks; competition; and other risks and uncertainties, including those described in the Company's Annual Information Form dated February 19, 2007 filed with the Canadian Securities Administrators and available at http://www.sedar.com. Accordingly, actual future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. All statements are made as of the date of this news release and the Company is under no obligation to update or alter any forward-looking information.