Dynacor Announces Closing of a $10 Million USD Credit Facility
MONTREAL, QUEBEC--(Marketwired - Jan 15, 2016) - Dynacor Gold Mines Inc. (TSX:DNG)(OTC:DNGDF) (Dynacor or the Corporation) is pleased to announce that it has entered into senior secured credit facilities in the aggregate amount of up to $10 million USD with Third Eye Capital Corporation (TEC) acting as agent for the lenders. The new credit facilities consist of a $7 million US drawdown term loan facility and a $3 million US revolving facility (collectively, the "Credit Facilities").
The term loan facility shall have a term of up to thirty-six months and bear interest at a rate of 10% per annum. The revolving facility will have a term of twelve months from the closing date, which may be extended for up to two additional periods of twelve months, and will bear annual interest at a rate of 8.5% or Prime rate + 6% per annum, whichever is greater. The Credit Facilities can be reimbursed at any time without any penalties.
The Credit Facilities will be utilized for the purposes of funding the completion of a new gold ore processing mill currently under construction (70% complete as of December, 2015) in Chala, Peru, accretive growth in its ore-processing business and for working capital and general corporate purposes.
In conjunction with the loan, Dynacor has agreed to issue to TEC, for the ratable benefit of the lenders, 950,000 common share purchase warrants ("Warrants"), each Warrant being exercisable at a price of $1.83 CAD per common share of Dynacor and expiring on January 14, 2019. Dynacor may accelerate the expiry time of the Warrants if, at any time, the closing price of the common shares of Dynacor on the Toronto Stock Exchange is 15% or more above the exercise price for a period of twenty (20) consecutive trading days.
?ÿfObtaining favorable financing under present market conditions is a true testament to the validity of Dynacor's business model and its performance." said Leonard Teoli, Dynacor's Vice President and Chief Financial Officer. "The three-year credit facility, with advantageous repayment conditions, will give Dynacor the financial assurance, flexibility and means to quickly ramp up production at its new Veta Dorada Plant in Chala while minimizing shareholder dilution."
ABOUT DYNACOR GOLD MINES INC.
Dynacor is a gold ore-processing and exploration Corporation active in Peru since 1996. The Corporation differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant. Dynacor's basic share count at 37.4 million outstanding is in the lowest quartile of the resource sector. The Corporation's assets include three exploration properties, including the advanced high-grade gold Tumipampa property and an operating 85.000 TPA gold and silver ore processing mill at Metalex-Huanca. The Corporation obtained its permit to construct a brand new 300 tpd mill in Chala Peru. This represents an important milestone for the Corporation's future growth. The Corporation's strength and competitive advantage comes with the experience and knowledge it has developed while working in Peru. Its pride remains in maintaining respect and positive work ethics toward its employees, partners and local communities.
FORWARD LOOKING INFORMATION
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, 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. (TSX:DNG)
Website:http://www.dynacorgold.com
Twitter:http://twitter.com/DynacorGold
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Contact
Jean Martineau
President and CEO
Dynacor Gold Mines Inc.
514-393-9000 Ext. 228
Dale Nejmeldeen
Director, Investor Relations
Dynacor Gold Mines Inc.
604.492.0099
M: 604.562.1348
nejmeldeen@dynacor.com