Gold Production in Southern Ecuador
6 million oz Gold & 27 million oz Silver
Message: Update to Shareholders
| February 2, 2009 |
| Dynasty Metals & Mining Inc.: Update to Shareholders |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 2, 2009) - NOT FOR DISSEMINATION IN THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES Dynasty Metals & Mining Inc. (TSX:DMM) ("Dynasty" or the "Company") provides the following update to shareholders. Ecuador Mining Law Late last week the new Ecuadorian Mining Law was published in the Ecuadorian government's official registry. The Mining Law has now taken effect, replacing the Mining Mandate. The new Mining Law allows the Company to continue developing each of its three principal projects. Company President, Rob Washer, commented: "The Mining Law provides a solid framework for the future development of the mining industry in Ecuador. Dynasty continues to advance plant construction and mine development at our Zaruma Gold Project. We are still planning to commission the gold plant at the end of March 2009 and are currently on budget. Initially, we plan to process 300,000 tonnes of ore to produce approximately 100,000 ounces of gold annually. The installed capacity of the plant, except for the leaching section, is 800,000 tonnes, allowing for significant expansion without additional significant capital investment." Bought Deal Private Placement On January 30, 2009 the Company announced that it had entered into an agreement with Cormark Securities Inc. as lead underwriter and including Canaccord Capital Corporation (the "Underwriters") pursuant to which the Underwriters agreed to purchase 2,500,000 common shares on a "bought deal" private placement basis at a price of $4.00 per share (see news release dated January 30, 2009). Company President, Rob Washer, further commented: "This financing allows the Company to move forward its timetable for growth without putting existing working capital at risk with minimal dilution to shareholders. Upon closing, we will have cash resources in excess of $26 million. In addition to commissioning the Zaruma gold plant, the Company is currently evaluating other opportunities, which include increasing mining activity at the Zaruma Gold Project to utilise the excess capacity of the mill, further advancing other projects in Ecuador and investment opportunities outside of Ecuador." The securities have not been and will not be registered under the U.S. Securities Act of 1933 (the "1933 Act"), as amended, or under any state securities laws, and may not be offered or sold, directly or indirectly, or delivered within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the 1933 Act) absent registration or an applicable exemption from registration requirements. This news release does not constitute an offer to sell or a solicitation to buy such securities in the United States. 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 three advanced-stage projects, Zaruma, Jerusalem and the Dynasty Goldfield as well as a highly prospective exploration project, the Dynasty Copper-Gold Belt. Dynasty Metals & Mining Inc. Robert Washer, President and CEO Michel Rowland, a member of AUSIMM (Australian Institute of Mining and Metallurgy) and a "qualified person" as defined by NI 43-101, is responsible for the technical information contained in this news release. |
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