Deal arranged with investors Keith Piggott, Javier Reyes, Gregg Sedun
By Devika Patel
Knoxville, Tenn., Aug. 16 – Dynasty Metals & Mining Inc. said it plans a US$4 million equivalent private placement of stock with Keith Piggott, Javier Reyes and Gregg Sedun.
The company will sell common shares at C$0.15 per share. The price per share reflects an 11.77% discount to the Aug. 15 closing share price of C$0.17.
Proceeds will be used to settle debt that the company owes to the Ecuadorian government, creditors and its employees and advance its mining projects in Ecuador.
In connection with the private placement, the company’s board will be altered so that a majority of its directors have been nominated by the investors.
The deal is contingent on the company securing an agreement with Vertex Managed Value Portfolio and Vertex Enhanced Income Fund to defer the debt payments owed to the Vertex entities, among other things, and on the company repaying $700,000 of debt owed to Robert Washer by issuing common shares to Washer at the same price as those sold in the private placement.
Dynasty is a mining company based in Vancouver, B.C.
| Issuer: | Dynasty Metals & Mining Inc.
|
| Issue: | Common shares
|
| Amount: | US$4 million equivalent
|
| Price: | C$0.15
|
| Warrants: | No
|
| Investors: | Keith Piggott, Javier Reyes and Gregg Sedun
|
| Pricing date: | Aug. 16
|
| Stock symbol: | Toronto: DMM
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| Stock price: | C$0.17 at close Aug. 15
|
| Market capitalization: | C$11.68 million
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