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the United States/
Malaga Inc. (Malaga)
Toronto Stock Exchange
MONTREAL, Oct. 18 /CNW Telbec/ - Malaga Inc. ("Malaga") (TSX: MLG) and
Dynacor Gold Mines Inc. ("Dynacor") are pleased to announce that a final
receipt has been issued for Dynacor's final prospectus which qualifies the
common shares, warrants and broker warrants underlying the previously issued
special warrants and special broker warrants. On September 5, 2007, the
Toronto Stock Exchange ("TSX") granted conditional approval for the listing of
the shares of Dynacor. As a result of the foregoing, Dynacor common shares
will commence trading on the TSX at the start of business on October 24, 2007,
on a "when-issued basis".
Malaga shareholders of record as of the close of business on October 26,
2007 (the "Record Date"), will be entitled to receive, by way of stock
dividend, 1 Dynacor common share for approximately each nine common shares of
Malaga held as of such Record Date. The final distribution ratio will be
determined based upon the number of shares of Malaga issued and outstanding as
of the Record Date and will be announced by way of press release as soon as
practically possible following the Record Date.
No fractional Dynacor common shares will be issued and no consideration
will be given therefore. The holders of common share purchase warrants and
options issued by Malaga will not be entitled to receive common shares of
Dynacor unless they exercise the Malaga common share purchase warrants or
options prior to the Record Date. It is expected that Malaga's registrar and
transfer agent will mail the Dynacor share certificates on or about October
Common shares of Malaga will commence to trade on an ex-dividend basis on
the TSX as of October 24, 2007.
As a result of the reduction of Malaga's issued stated capital, which
reduction was approved at the last meeting of its shareholders held on May 16,
2007, there will be no additional tax payable by Malaga's shareholders as a
result of the stock dividend.
ABOUT DYNACOR GOLD MINES INC.
Since 1998, Dynacor has been producing gold at Acari through custom
milling, purchasing ore from local miners. In 2006, the Acari mill generated
an operating profit of $988,564 from the 14,312 ounces of gold produced from
its custom milling operations. At the end of 2006, the mill capacity was
increased from 60 to 100 t/day. During the first half of 2007 9,446 ounces of
gold were produced. The profit margin deriving from gold sales for the first
half of 2007 was $746,647, compared to $418,490 for the same period in 2006.
The Company expected to produce 20,000 ounces of gold this year which was
achieved with over 24,000 ounces of gold, and could generate operating profits
of over $1.8 million in 2007.
ACARI - A NEW FLOTATION MILL
Further to the soaring price of copper, mining of Cu ore is constantly
increasing in the area and Dynacor Gold Mines intends to take advantage of the
situation. Consequently, Dynacor began, during recent weeks, the construction
of a second processing mill at Acari. This new mill, equipped with flotation
units, will process copper, gold, and silver ore, which is abundant in the
With this second mill, Dynacor could substantially increase its operating
profits in 2008. Moreover, an agreement was signed with a Swiss company for
the sale of the entire production of the concentrate produced at this new
The Tumipampa property was acquired in 2001. In 2002 and 2003, sixteen
holes were drilled for a total of 4,055 metres. As of today, six major veins
have been discovered. Drill hole number one intercepted a structure named
"Manto Dorado" grading 7.33 g/t Au and 0.71% Cu over 5.18 metres (true width).
Drill hole number three intercepted a structure grading 8.20 g/t Au and
0.06% Cu over 3.39 metres. Finally, drill hole number six intercepted a vein
grading 12.25 g/t Au over 1.30 metre.
A two-step diamond drilling campaign is being planned for early 2008. In
order to explore auriferous epithermal veins and mineralized breccias,
geological mapping, geochemical and geophysical surveys, followed by diamond
drilling, will be realized. This program will allow to characterize and define
the mineralized zones as well as their lateral and depth extensions.
Casaden is located in the district of Magdalena, 890 Km northeast of
Lima, within the Chicama-Yanacocha (Newmont) corridor. This area is
characterized by the presence of large successful mining operations led by
high profile companies such as Barrick, Gold Fields, Cambior and Buenavantura.
Casaden consists of 3 mining concessions, covering an area of 1,600 ha.
Outcrops sampled in the Cdegreesarea of Casaden show gold anomalies of up to
1.43 g/t Au (sample 801: 1426 ppb Au). Outcrops of the Retamas river show gold
anomalies of up to 0.5 g/t Au (sample 839: 526 ppb. Au). The confluence area
of faults in the Las Minas stream shows gold anomalies of up to 0.7 g/t Au
(sample 826: 698 ppb Au). Surface exploration work has been made and there are
plans to initiate a drilling campaign in 2008 on more significant targets.
Alain-Jean Beauregard P. Geo., and Daniel Gaudreault, P. Eng., of
Géologica Groupe-Conseil have been the Qualified Persons (QP) for Malaga and
have collaborate through their regular visits on site, for all matters related
to sampling procedures, technical information and the supervision of ongoing
development work. Thus, they can testify to the precision and exactitude of
the data and the mining and geological knowledge of the Acari, Tumipampa and
Casaden properties, as required by National Instrument 43-101 and its annexes
with respect to the reporting and content of this press release.
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
Malaga, 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.
For further information:
For further information: Please contact: Jean Martineau, President &
CEO, Malaga Inc., (514) 288-3224; Christina Lalli, Investor Relations, Malaga
Inc., (514) 288-3224; Renmark Financial Communications Inc.; Barbara
Komorowski: firstname.lastname@example.org; Tina Cameron:
email@example.com; Medias - Vanessa Napoli:
firstname.lastname@example.org, (514) 939-3989, Fax: (514) 939-3717,