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Dynacor Gold Mines Inc.
("Dynacor" or "the Company") (TSX:DNG - News) is pleased to announce
it has closed a private placement with investors from Canada, United States
and Europe for an amount of $4.5 million. The private placement consists of
an aggregate 4,285,383 units at a price of $1.05 per unit. Each unit is
comprised of one common share and one-half of a warrant. A full warrant
entitles the holder to purchase one additional common share at a price of
$1.50 until December 20, 2012. The expiry date may be accelerated in the
event the weighted volume average trading price of Dynacor's shares is above
$2.00 per share for a period of 20 consecutive trading days. Insiders have
subscribed for an aggregate of 1,691,311 units; of which Directors and senior
management have invested 235,000 units.
The proceeds allowed Dynacor to repay in
full the $2.6 million outstanding convertible note due to Malaga Inc. (TSX: MLG - News). Dynacor had the
option to pay down the note in cash or have it converted at $0.40 per share
which would have created a dilution of 6.5 million shares. After payment of
the convertible note in cash, the fully diluted shares outstanding is reduced
slightly from 39,515,320 to 39 ,477,360. Hence, for
similar dilution, Dynacor has been able to improve its cash position by $1.9
million before fees and expenses which will provide financial flexibility for
the coming fiscal year.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining
company active in Peru through its subsidiaries since 1996. The Company's
assets include the Acari, Casaden and Tumipampa exploration properties. The
Acari mill produces gold by custom milling. Dynacor's strength and
competitive advantage comes with the experience and knowledge the Company has
developed while working in Peru. Its pride remains in maintaining respect and
positive work ethics toward its employees, partners and local communities.
FORWARD LOOKING INFORMATION
Certain statements in the foregoing may
constitute forward-looking statements, which involve known and unknown risks,
uncertainties and other factors that may cause the actual results,
performance or achievements of Dynacor, or industry results, to be materially
different from any future result, performance or achievement expressed or
implied by such forward-looking statements. These statements reflect
management's current expectations regarding future events and operating
performance as of the date of this news release.
Contact:
Jean Martineau
Dynacor Gold Mines Inc.
President & CEO
514-288-3224
Dale Nejmeldeen
Dynacor Gold Mines Inc.
Investor Relations
778-574-2806, Mobile: 604-562-1348
604-608-9223 (FAX)
nejmeldeen@dynacorgold.com |