Stakeholder: What are the next steps?
Dynacor: We expect the inspector from MEM to visit the Veta Dorada site in the beginning of June. In order to be absolutely certain of passing each step during the permit process, we have put in place extra precautionary moves by hiring two engineers. They have been assigned to pre-assess the site and review every facet of the plant before the official visit. It is unlikely there is anything that will prevent us from receiving the compliance license in June (Note: Dynacor Receives Compliance License, see news release dated June 13, 2016). Upon receipt of the license, Dynacor will immediately apply for its water usage permit from the Ministry of Agricultural and Irrigation (MINAGRI). The MINAGRI is well aware of our new Veta Dorada plant as we have been building a relationship over the last month. As per the new fifteen-business day permit rule, we expect to receive the water usage permit in two to four weeks. This should take us to the end of June or early July. Lastly, we need to receive the final operation permit from the MEM and the same rules apply taking about another two to three weeks. We are planning to hold the official ribbon cutting ceremony in September.
Stakeholder: Have the warrants been exercised by the lender?
Dynacor: No they have not.
Stakeholder: Will these shares become available on the market?
Stakeholder: What is the status of a dividend?
Dynacor: We are on record as saying we will pay our first dividend when we are producing at a rate of 600 tpd. However, at this time, we are reviewing a plan in order to enable us to offer the dividend much sooner. The Company expects to generate much more sustainable cash flow from the new mill. In years past, Dynacor was making upwards of US $2.5 million dollars a quarter, but that was based purely on a higher gold price. The new mill will bring superior operational efficiencies and production increases thereby creating a much more sustainable environment for the dividend.
Stakeholder: Please comment on the low amount of shares insiders own?
Dynacor: It is important to understand unlike many other companies, Dynacor Gold Mines Inc. is a spin off of another company. The original board members in the parent company lost many shares due to the previous company’s bankruptcy.
What is most important to us is to have members on the board that can assist the Company. There are many cases in the market where there are board members that hold a lot of shares, but bring very little value to the company. In the industry, it is frowned upon and not good practice to make it a requirement for new members to buy a substantial amount of shares before joining.
Last year we hired an independent firm to review our situation and to advise on what is acceptable in terms of salary and shares etc. They informed us that when comparing to peers, Dynacor is in the top percent of what others are doing.
Stakeholder: What is the the plan for Tumipampa?
Stay tuned for part 5 of 5…