DynaResource Engages Gale Capital Corporation as Its Investor Relations Advisor
Feb 17, 2012, 07:01 ET
IRVING, Texas, Feb. 17, 2012 /CNW/ - DynaResource, Inc. (OTCBB: DYNR) ("DynaUSA", or "the Company"), a Resource Investment and Management Company based in Irving, Texas, with a current focus on the San Jose de Gracia Project in Sinaloa, Mexico ("SJG"), targeting growth in the defining and production of gold and silver resources, is pleased to announce that it has engaged Gale Capital Corporation to perform investor relations related services for the Company. Mark van der Horst, President of Gale Capital, will assist DynaResource with corporate communications, PR and investor and shareholder outreach.
The initial term of the agreement is 3 months commencing February 15, 2012 and is automatically renewed for additional 3 month terms unless terminated by either party on not less than 15 days' written notice. The Company will pay Gale Capital a monthly fee of USD $10,000 and will also reimburse Gale Capital's reasonable travel expenses and other out-of-pocket expenses. The Company will also grant Gale Capital the option to purchase up to 37,500 common shares of the Company, vested immediately and exercisable for 3 years at a price of $4.00 per share. An additional 37,500 options are to be granted to Gale Capital at each renewed 3 month term, vested immediately and exercisable for 3 years at a price equal to the price of the Company's stock when granted. If the agreement is terminated, any unexercised options will expire in 90 days.
Mr. K.D. Diepholz, Chairman and CEO of DynaResource, Inc., stated, "The Company's engagement of Gale Capital provides DynaResource the opportunity to jump start a comprehensive public awareness program for the Company. Currently, DynaResource is virtually unknown with previous limited exposure to the public, yet the Company occupies a unique and significant position in the industry. I expect Mr. van der Horst and Gale Capital to enhance the public's awareness of DynaResource. I look forward to working with Mark and his associates as DynaResource commences its public awareness campaign.
Further, the Company's engaging of Gale Capital will result as a matter of law, in the Company becoming a fully reporting issuer in British Columbia. Canadian investors and companies will now be able to review the Company's disclosure documents on SEDAR."
"Gale Capital and I are excited to receive the engagement from DynaResource for investor relations services. We see the unique position of the Company with its two critical ownership positions: a 50% percent ownership of DynaResource de Mexico ("DynaMexico"), which in turn owns 100% interest in the prolific San Jose de Gracia District, and a 100% interest in Mineras de DynaResource, the Mexico-based subsidiary which serves as the exclusive operating entity at SJG. We believe that DynaResource has established a solid platform and foundation from which to grow a significant competitor company in the producer segment of the mining industry. Additionally, we are aware of the significant competitive advantages held by DynaMexico, with its 100% owned SJG Property. We see DynaMexico as a potential world class producer of gold," commented Mr. van der Horst, President of Gale Capital.
About San Jose de Gracia
The San Jose de Gracia District, covering 69,126 hectares, is 100% owned by DynaResource de Mexico. DynaUSA currently holds 50% of the outstanding shares of DynaMexico and Goldgroup Mining Inc. holds 50%.
In excess of one million ounces of gold were reportedly produced from the SJG District in the early 1900's, originating from veins grading from 30.0 g/t Au to 60.0 g/t Au. A National Instrument 43-101 ("43-101") compliant resource estimate was recently released by DynaMexico, reporting 402,092 Indicated Oz. gold at an average grade of 5.69 g/t, and 740,911 Inferred Oz. gold at an average grade of 5.83 g/t. An NI 43-101 compliant technical report, including the resource estimate recently reported, is expected to be filed with Sedar within 45 days. DynaMexico anticipates the commissioning of a preliminary economic assessment ("PEA") in the first quarter 2012.
In June 2010, the SJG Project was recognized as the most significant Gold Project in the State of Sinaloa for the year 2010.
About DynaResource / DynaMexico / Mineras de DynaResource – Operating Entity
DynaResource is a Resource Investment and Management Company based in Irving, Texas, with a current focus on the San Jose de Gracia Project in Mexico, targeting growth in the defining and production of gold and silver resources. The Company formed DynaResource de Mexico in March, 2000 specifically for the purpose of acquiring and consolidating the SJG District; and it completed the consolidation of the entire SJG District (approx. 15 sq. Km. at that time) in 2003. During the period 2003-2006, DynaMexico conducted Pilot Production operations at the San Pablo area of SJG; reporting production results of: 18,250 Oz. Gold produced; 42,000 tons mill feed; average feed grade of approximately 15-20 g/t Gold; and, average production costs of < $175. / Oz. In September 2006, the Company entered into the Earn In / Option Agreement with Goldgroup, which provided that Goldgroup contribute $18 M. USD in funding to DynaMexico for exploration and development expenditures at SJG, in exchange for 50% of the outstanding shares of DynaMexico. Under agreement with DynaMexico, Mineras de DynaResource SA de CV. ("Mineras") has been named the exclusive operating entity at San Jose de Gracia. DynaUSA owns 100 % of Mineras. The Chairman-CEO of DynaUSA also serves as the President of DynaMexico, and as the President of Mineras.
For future gold production from the SJG Project, DynaUSA would be the beneficiary as a 50% shareholder of DynaMexico. DynaUSA expects a percentage of its retained earnings to be distributed as dividends to Shareholders.
For further information on DynaResource and DynaMexico, please visit www.dynaresource.com or contact:
Mark van der Horst, President
Gale Capital Corporation
Brad J. Saulter, V.P. - Investor Relations
K.D. Diepholz, CEO
IMPORTANT CAUTIONARY NOTE REGARDING CANADIAN DISCLOSURE STANDARDS
The Company is or about to be an "OTC Reporting Issuer" as that term is defined in BC Instrument 51-509, Issuers Quoted in the U.S. Over-the-Counter Markets, promulgated by the British Columbia Securities Commission. Accordingly, certain disclosure in this news release or other disclosure provided by the Company has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securities laws. In Canada, an issuer is required to provide technical information with respect to mineralization, including reserves and resources, if any, on its mineral exploration properties in accordance with Canadian requirements, which differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC") applicable to registration statements and reports filed by United States companies pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. As such, information contained in this news release or other disclosure provided by the Company concerning descriptions of mineralization under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC and not subject to Canadian securities legislation. This news release or other disclosure provided by the Company may use the terms "measured mineral resources", "indicated mineral resources" and "inferred mineral resources". While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to reserves. In addition, "inferred mineral resources" have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a "preliminary economic assessment" as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This News release contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed "forward-looking". All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are "forward-looking information". These statements relate to future events or future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource. These forward-looking statements reflect the Company's current internal projections, expectations or beliefs and are based on information currently available to DynaResource. In some cases forward-looking information can be identified by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "projects", "potential", "scheduled", "forecast", "budget" or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company's plans at the San Jose de Gracia property. Many of these assumptions are based on factors and events that are not within the control of DynaResource and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available at www.sec.gov. Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
SOURCE DynaResource, Inc.
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