10:59:29 EDT Thu 28 Mar 2024
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or Name
USA
CA



Dynasty Metals & Mining Inc
Symbol DMM
Shares Issued 87,808,832
Close 2017-04-25 C$ 0.33
Market Cap C$ 28,976,915
Recent Sedar Documents

Dynasty Metals completes $500,000 (U.S.) placement

2017-04-26 07:45 ET - News Release

Mr. Keith Piggott reports

DYNASTY ANNOUNCES COMPLETION OF US$500,000 PRIVATE PLACEMENT, LISTING ON THE TSX VENTURE EXCHANGE AND CORPORATE UPDATE

Dynasty Metals & Mining Inc. has completed a non-brokered private placement of secured convertible debentures of the company in the aggregate principal amount of $500,000 (U.S.) to Credipresto SA de CV SOFOM ENR.

$500,000 (U.S.) private placement -- convertible debenture

The debenture matures two years from the date of issuance, bears interest at a rate of 12 per cent per annum payable quarterly in cash and is fully secured through a pledge of all the issued and outstanding share capital of Elipe SA, an indirect wholly owned subsidiary of the company, ranking behind the outstanding loans from Vertex Managed Value Portfolio and Vertex Enhanced Income Fund. The principal amount of the debenture is convertible at any time at the option of the holder into common shares of the company at a price of 26 cents per common share, based on a Canadian-dollar/U.S.-dollar exchange rate of 1.3516. An aggregate of up to 2,599,231 common shares are issuable by the company on conversion of the debenture, representing approximately 2.96 per cent of the issued and outstanding common shares on completion of the private placement.

The company intends to use the net proceeds from the private placement for working capital and general corporate purposes.

In connection with the private placement, the company issued to Credipresto warrants to purchase 250,000 common shares in lieu of a cash corporate finance fee. Each warrant will entitle the holder thereof to acquire one additional common share at a price of 35 cents per common share for a period of two years from the date of issuance.

TSX Venture Exchange transition

Dynasty also announces that, further to its previous news releases, the common shares will commence trading on the TSX Venture Exchange effective at the opening of trading on Thursday, April 27, 2017, under the trading symbol DMM. The company will be delisted from trading on the Toronto Stock Exchange at the close of business on Wednesday, April 26, 2017.

Corporate update

The company continues to lower its debt through gold production, negotiation with vendors and rationalizing non-core assets.

Mining at the Celica property continues with mineral in vein structures up to 10 metres wide, with improvements in grade. During the first quarter of 2017, Dynasty transported 37,000 tons of material to its processing plant. The company experienced some delays in gold production due to unusually heavy rainfall in March and April, 2017. The treatment plant began operating again in late April, 2017, and processed material at an approximate rate of 700 tons per day.

The annual maintenance payments to the Ecuadorian government on all of the company's 60 concessions in the southern part of the main structural gold trend in Ecuador have been paid up to date and on time for 2017.

The company expects to have the management cease trade order issued by the B.C. Securities Commission on April 4, 2017, lifted on or before May 2, 2017, by filing its annual financial statements, management's discussion and analysis, and annual information form for the financial year ended Dec. 31, 2016.

Keith Piggott, president and chief executive officer of Dynasty, commented: "Since new management took over Dynasty in September, 2016, management has overcome various challenges involving operations, concession payments, vendor payments, funding, accounting and its audit. I am excited at our progress in addressing legacy problems and issues and remain focused on building shareholder value through cash flow and derisking our core assets."

About Dynasty Metals & Mining Inc.

Dynasty Metals & Mining is a Canadian-based mining company involved in the mining, exploration and development of mineral properties in Ecuador. The company is currently focused on gold production and continued development at its Zaruma gold project. The company also owns the Dynasty goldfield project, a permitted property 180 kilometres southwest of the Zaruma project, and the Jerusalem project, an exploration property immediately south of the Fruta del Norte project.

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