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Malaga Inc. (Malaga)
Symbol: MLG
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 31, 2007.
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.
ACARI MILL
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 area.
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 mill.
TUMIPAMPA PROPERTY
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 PROPERTY
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 Geologica 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.
FORWARD-LOOKING INFORMATION
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.