Malaga Inc. (Malaga)
Symbol: MLG
Toronto Stock Exchange
MONTREAL, Aug. 9 /CNW Telbec/ - Malaga is pleased to announce that Dynacor Gold Mines Inc. ("Dynacor"), currently a wholly-owned subsidiary of Malaga, has recently completed the closing of a CA$4 million financing, the proceeds of which are being held under escrow until the common shares of Dynacor are listed on a recognized Canadian exchange. D&D Securities Company of Toronto, Ontario, acted as lead agent in this transaction. The funds will be used by Dynacor to undertake the exploration and drilling programs planned for fall 2007. The work will be done mainly on the Tumipampa and Casaden properties.
SPIN OFF
Malaga is working diligently toward the spin-off of its gold assets into a new public company, namely Dynacor. The new company will hold all of the gold assets including the Acari mill, from which gold is produced through custom milling, as well as the Casaden and Tumipampa properties.
Malaga expects the filing of the preliminary prospectus of Dynacor to be completed within the next upcoming days. The spin-off of its gold assets to Dynacor is expected to be completed soon thereafter. A follow-up press release will then be issued announcing the declaration of a stock dividend and the distribution date for the distribution of the shares of Dynacor to the shareholders of Malaga.
COMPANY PROFILE
Malaga is a mining company, which owns and operates through its subsidiaries, a tungsten mine and gold plant with mining and exploration activities focused in Peru. It holds 100% interest, and operates the Pasto Bueno tungsten mine. In addition, the Company holds 44% interest in the Peruvian company called Hidroelectrica Pelagatos. This corporation operates the hydroelectric potential of the Pasto Bueno property.
Malaga focuses on efficient and productive mining practices, in order to optimize current operations. The Company is committed to growth, through increasing its production levels, continuing exploration projects on existing properties and through strategic acquisitions. It also seeks diverse growth opportunities such as the hydroelectric potential through Hidroelectrica Pelagatos.