Dynacor Gold Mines Closes $1.0 Million Debt Financing to Increase Custom Milling at Acari
MONTREAL, QUEBEC–(Marketwire – June 8, 2010) – Dynacor Gold Mines Inc. (“Dynacor” (TSX:DNG) is pleased to announce that it has concluded a debt financing agreement with Trapeze Capital Corp. and Trapeze Asset Management Inc., on behalf of their respective managed accounts, for $1.0 million. The proceeds will be used to increase gold production from custom milling. With this financing, the Company expects to substantially increase its gold sales in the coming months.
The loan was made by way of a Secured Debenture which is due December 31, 2011 and bears interest at the rate of 13% per annum. Should Dynacor report an EBITDA of more than $2.5 million over four quarters cumulatively, it will pay a premium equal to 12% of the principal outstanding.
This non-dilutive financing will allow Dynacor to significantly increase its custom milling operations at Acari. “The financing is key as it will allow Dynacor to increase cash flow significantly through an increase in sales of gold by 10,000 ounces in the next twelve months without diluting Dynacor’s shareholders.” stated Pierre Monet, Vice president and CFO of Dynacor.
“During the third quarter of 2010, Dynacor is planning to reinitiate the exploration of the Tumipampa skarn structure, this will entail geological surface work and detailed geophysics in order to prepare the next diamond drilling campaign.” stated Jean Martineau, Dynacor’s President and CEO.
Dynacor Gold Mines inc. will hold its annual general meeting in Montreal, on June 16 at 10 am at 1 000 de la Gauchetière West, MZ-150.
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold exploration and mining company that has been 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.
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 Gold Mines, 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.
Dynacor Gold Mines Inc.
President & CEO
Dynacor Gold Mines Inc.