DHNA gets $2M financing
Dhanoa Minerals Receives Equity Financing Commitment From Institutional Investors for Additional $2.3 Million
Financing to Complete Acquisition of Its Three Bella Rica Mines and New Central Processing and Refinery Facility.
Jun 7, 2007 8:30:00 AM
TORONTO, ONTARIO -- (MARKETWIRE) -- 06/07/07 -- Dhanoa Minerals Ltd. (OTCBB: DHNA)(FRANKFURT: D7Z) is pleased to announce that the company has received a financing commitment for $2.3 million. The financing will be used to complete the purchase of the company's three gold and silver mines located in Southern Ecuador as well as continue efforts to modernize mine operations. The three mines (Bonanza, Guanache, and Mollopongo) are believed to contain 850,000 ounces of gold and over 4 million ounces of silver.
The company will dedicate $1.3 million of the new equity financing to complete the acquisition of the mines. Dhanoa Minerals will have satisfied all of the cash obligations pursuant to the acquisition and will have officially acquired its 80% interest in the three Bella Rica mines. This will give Dhanoa Minerals full ownership of the revenue generated from all gold and silver production at these properties.
Upon closing, the company will also realize ownership of an additional 2,100 ounces of gold and 10,000 ounces of silver in reserves, which has a current market value of over $1.5 million.
The remaining monies for the equity financing will be used to complete the recently announced acquisition of the "Spanish Plant", a new central processing and refining facility, as well as continue other modernization efforts to increase production.
"This equity financing commitment is the realization of our acquisition of these tremendously resource rich properties and represents a significant milestone for our company. Today is a very exciting day for our shareholders. Today Dhanoa Minerals has become a major force in gold and silver production in southern Ecuador," stated Lee Balak, President of Dhanoa Minerals.
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