MONTREAL, QUEBEC, Jun 08, 2010 (MARKETWIRE via COMTEX) –
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 Gauchetiere 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.
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