Vancouver (pcJ News Briefs) – Dynasty Metals & Mining Inc. (TSX: DMM; OTCQX: DMMIF) has closed a non-brokered private placement of a secured convertible debenture in the aggregate principal amount of US $500,000 to Credipresto S.A. de C.V. SOFOM E.N.R.
The debenture matures two years from the date of issuance, bears interest at a rate of 12% per annum payable quarterly in cash and is fully secured through a pledge of all the issued and outstanding share capital of Elipe S.A., 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 at a price of CDN $0.25 per common share, based on a Canadian dollar/US dollar exchange rate of 1.3322.
The company intends to use the net proceeds for working capital and general corporate purposes.
In connection with the private placement, Dynasty Metals & Mining issued to Credipresto warrants to purchase 750,000 common shares in lieu of a cash corporate finance fee. Each warrant will entitle the holder thereof to acquire one additional share at a price of CDN $0.33 per share for a period of two (2) years from the date of issuance.
Dynasty Metals & Mining Inc. 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 180km southwest of the Zaruma project, and the Jerusalem Project, an exploration property immediately south of the Fruta del Norte project.
photo credit: Dynasty Metals & Mining