SPROTT ASSET MANAGEMENT TO INCREASE
ITS DYNASTY STAKE TO 22.2%
Vancouver, BC, February 20, 2008 - Dynasty Metals & Mining Inc. (TSX:
DMM, "Dynasty" or the "Company") reports that Sprott
Asset Management ("Sprott") has agreed to purchase 1,000,000
common shares out of a non-brokered private placement of up to 1,500,000
common shares of the Company at a price of $7.50 per share, for total
proceeds of $11,250,000.
Upon completion, which is subject to final documentation and approval of
the Toronto Stock Exchange, Sprott will own 6,837,900 common shares, or
approximately 22.2% of the Company's issued shares.
Sprott has also agreed to enter into a voting trust agreement pursuant to
which Sprott will vote any common shares it holds in excess of 20% of the
issued common shares of Dynasty in favour of matters management brings
before the shareholders. The agreement will have a term of one year and
will be renewable for successive one year terms.
The Company currently has approximately $14 million in cash, the majority
of which will be used to complete planned mine development and mill
construction at the Company's Zaruma Gold Project. The proceeds of this
offering will be used to expand exploration and development work at Zaruma,
to expedite the Company's plans at its other major projects and for general
working capital.
Company President, Robert Washer, commented: "We are very
pleased with the continued support shown by Sprott and other participating
investors. The proceeds from this financing will allow the Company to
simultaneously advance on its previously stated objectives at Zaruma,
Jerusalem and the Dynasty Goldfield as well as provide capital to pursue
new opportunities".
The Company will pay a 4½% finder's fee in cash or shares in respect
of this transaction.
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, Zaruma, which is nearing
production, and Jerusalem, as well as 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, the estimation of mineral resources, the
realization of mineral resources estimates, the success of exploration
activities 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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