Printer Friendly

DAYTON TO RAISE UP TO U.S. $15 MILLION FROM SPECIAL WARRANT OFFERING

 VANCOUVER, British Columbia, Oct. 1 /PRNewswire/ -- Dayton Mining Corp. (Toronto: DD) has received and, subject to receipt of stock exchange approval, has accepted a financing proposal from Burns Fry Ltd. pursuant to which the company will issue U.S. $13 million of Special Warrants convertible into Convertible Debentures, which amount may be increased by up to an additional U.S. $2 million upon notice from Burns Fry Ltd. on or before Oct. 12, 1993.
 In announcing the private placement, Wayne McClay, president and chief executive officer, stated, "After having requested and considered merger proposals from various mining companies, the company's board of directors has determined that it would be in the best interests of the company to raise the financing to continue the development of its Andacollo Project itself. Although the offers received from senior mining companies placed a significant premium value on the company's shares, the board of directors concluded that the share exchange ratios offered do not sufficiently reflect the relative value of the company's assets or the significance of the potential to increase reserves on the property."
 The company has retained Bechtel Financial Services Inc. to act as financial advisor to arrange a bank project financing to fund construction of the Andacollo Project. Bechtel Mining and Metals have submitted a Lump Sum Turn Key proposal which will provide a fixed price contract to construct a 14,000 ton per day facility and which further provides certain schedule, performance, and completion guarantees.
 The proceeds raised from the Special Warrant offering will be used by the company to further develop the Andacollo Project in preparation for construction and to commence a drill programme with the objective of expanding the existing mineable deposits in addition to further testing 8 new deposits not previously included in the company's reserves. After paying the expenses of the offering and repaying a U.S. $5 million loan to Pegasus Gold Inc., and assuming full subscription, the company will have approximately U.S. $9 million for exploration, project development, and general corporate purposes.
 The Convertible Debentures will have a 5-year term, carry an interest rate of 7 percent payable semi-annually, and be convertible at any time prior to maturity into common stock of Dayton at a conversion price equivalent to Cdn. $3.025 per share. Each U.S. $1,000 principal amount of the debentures will be convertible, at the option of the holder, into 441 common shares of the company.
 The company intends to file a prospectus to qualify the Convertible Debentures into which the Special Warrants are to be exchangeable, as well as the Common Shares into which the Debentures may be converted.
 Dayton Mining Corp. is a Canadian-based international mining company engaged in the exploration and development of precious metals properties in North and South America. The company is presently developing its 100 percent owned Andacollo Gold Project, located in central Chile. Gold production in excess of 125,000 ounces per year is projected at Andacollo at an average cash operating cost of approximately U.S. $172 per ounce. Present mineable reserves are approximately 1.1 million ounces of gold, with considerable additional potential on the property.
 Dayton's Common Shares trade on the Toronto Stock Exchange.
 -0- 10/1/93
 /CONTACT: Gil Atzmon, VP, Investor Relations or R.J. (Don) MacDonald, senior VP and CFO, 604-662-8383/
 (DD.)


CO: Dayton Mining Corp. ST: British Columbia IN: MNG SU: OFR

MF-LS -- LA013 -- 7627 10/01/93 07:48 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 1, 1993
Words:575
Previous Article:CU BANCORP SIGNS LETTER OF INTENT TO SELL CERTAIN MORTGAGE BANKING ASSETS
Next Article:OLYMPIC REGISTERS OFFERING OF 1,000,000 SHARES OF CONVERTIBLE PREFERRED STOCK
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters