DYNASTY EXERCISES OPTION TO BUY BACK
ROYALTY AT
ITS NEAR PRODUCTION OF ZARUMA GOLD PROJECT
Vancouver, BC, December 18, 2007 - Dynasty Metals & Mining Inc. (TSX:
DMM, the "Company") has exercised its option to purchase one-half
of a 3% Net Smelter Returns Royalty ("NSR Royalty") from IAMGOLD
Ecuador S.A. ("IAMGOLD") for US$1 million.
The NSR Royalty agreement relates to certain concessions at the Company's
Zaruma Gold Project that were acquired from IAMGOLD in 2004. The Company
has a second option to purchase the remaining one-half of the NSR Royalty
for US$5 million by June 2009.
Company President and CEO, Robert Washer, commented: "This is a very
positive step for the Company. The Zaruma Gold Project has a significant
high grade gold resources estimate (see the Company's news release dated
July 12, 2006 available on SEDAR at www.sedar.com) and significant
exploration potential within 103 square kilometres of concession area. With
gold currently valued at about $800 per ounce, the cost to exercise the option
represents less than the NSR Royalty otherwise due in the first full year
of production."
The Zaruma Gold Project
The Company is presently constructing a plant at its Zaruma Gold Project,
which is scheduled to commence operations in the second quarter of 2008 at
an initial production rate of 100,000 ounces
of gold per annum.
With approximately $17 million in cash (subsequent to making the option
payment), the Company has sufficient capital to fund the completion of
plant construction and mining start-up at the Zaruma Gold Project, as well
as continue with the Company's other development and exploration plans.
An Independent Preliminary Assessment of the Zaruma Gold Project, which is
dated August 21, 2006 and is available for viewing at www.sedar.com, estimated a pre-tax cumulative undiscounted cash
flow from the proposed mine of US$467 million, net of the NSR Royalty, over
a 14.5 year mine life. This estimate was based upon the Company's current
gold resource and gold valued at $500 an ounce.
Quality Control and Assurance
The preparation of the technical information contained in this news release
was supervised by Michel Rowland, a member of the AUSIMM (Australian
Institute of Mining and Metallurgy) 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 www.dynastymining.com, or
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 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.
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