VANCOUVER, BRITISH COLUMBIA--(Marketwire -07/23/12)- Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (DMM.TO)(DMMIF) announces that the processing plant at the Zaruma Gold Project, located in the El Oro Province of southwestern Ecuador, was the target of an armed robbery in the early morning of July 23, 2012.
A group of armed robbers gained access to the site and escaped with dore bars containing approximately 1,300 ounces of gold and 4,000 ounces of silver. No employees were fatally injured during the assault and the gold storage facility sustained some repairable damage. The robbery has been reported to the appropriate Ecuadorian authorities. Police are currently on site at Zaruma working with the Company to investigate the incident.
Dynasty has insurance to cover this type of loss with an internationally recognized insurance company and is in the process of filing a claim.
Robert Washer, the Company's President and Chief Executive Officer, commented: "The safety and well-being of our employees is our principal concern and we will be providing appropriate support to all employees, particularly those directly involved in the incident. I would like to thank the Ecuadorian authorities, particularly the police, for their rapid response and meaningful support during this time. We are co-operating with the relevant authorities and will provide further updates when more definitive information becomes available."
The incident at the plant could have an adverse effect on the Company's near term production plans and in the event that the Company cannot recover the stolen dore bars or receive sufficient insurance proceeds in a reasonable time period there may be a material adverse effect on the Company's liquidity and operations, the extent of which cannot be determined at this time. The Company intends to review its security policies and procedures to identify potential upgrades in order to reduce the likelihood of such an incident reoccurring in the future.
About Dynasty Metals & Mining
Dynasty Metals & Mining Inc. is a Canadian based mining company involved in the exploration and development of mineral properties in Ecuador.
The Company has the producing Zaruma Gold Project, the advanced-stage Jerusalem Project, and a highly prospective exploration project, the Dynasty Copper-Gold Belt, which includes the advanced-stage Dynasty Goldfield.
This news release contains certain forward-looking statements that reflect the current views and/or expectations of Dynasty with respect to its performance, operations and future events, including statements regarding the possible effects on the Company's business as a result of the armed robbery at Zaruma. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the business and the industry and markets in which the Company operates, including assumptions relating to the Company's ability to obtain sufficient insurance proceeds or recover the stolen gold and silver within a reasonable time period; and the Company's ability to repair the damage to the gold storage facility in a timely manner and to continue its processing activities. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Investors are cautioned that all forward-looking statements involve risks and uncertainties including that the Company's processing activities could be adversely impacted by the robbery and the Company may not obtain insurance proceeds or recover the stolen gold within a reasonable time frame, which could have a material adverse effect on the Company's liquidity and operations; and other risks and uncertainties listed in the Company's public filings. These risks, as well as others, could cause actual results and events to vary significantly. Accordingly, readers should not place undue reliance on forward-looking statements, which are qualified in their entirety by this cautionary statement. There can be no assurance that forward-looking statements, or the material factors or assumptions used to develop such information, will prove to be accurate. The Company does not undertake any obligations to release publicly any revisions for updating any voluntary forward-looking statements, except as required by applicable securities law.