Core Gold DMMIF

Dynasty Settles US$1.44 Million of Short Term Debt By Way of

[edx]

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 14, 2015) - Dynasty Metals & Mining Inc. ("Dynasty" or the "Company") (TSX:DMM)(OTCQX:DMMIF) announces that it has settled US$1,439,500 of the promissory notes owed to corporations represented by the Company's President and Chief Executive Officer by the issuance of 4,245,885 (the "Transaction") of the Company's common shares (the "Shares").

The Company's Board of Directors determined that the exchange of debt for equity to be beneficial to improve the Company's current liquidity and working capital position.

The settlement was based on a share price of C$0.45 per common share, such being the volume-weighted average trading price of the common shares of the Company during the five trading days immediately preceding September 4, 2015, the date at which the settlement was approved by the Company. The Bank of Canada noon exchange rate of USD/CAD $0.7534 on September 4, 2015 was used to convert the amount owed from USD to CAD. The Toronto Stock Exchange conditionally approved the issuance of the Shares.

Subsequent to the Transaction, the Company now has 46,706,968 common shares outstanding of which 13,114,035 are held by corporations represented by the Company's President and Chief Executive Officer. The Company remains indebted to corporations represented by the Company's President and Chief Executive Officer in the amount of US$560,500 by way of interest free promissory notes which are secured by way of a General Security Agreement over certain assets of the Company.

The Transaction shall constitute a related party transaction within the meaning of Multilateral Instrument 61-101. Management considers the Transaction to be advantageous as it improves the Company's liquidity and working capital positions. The Transaction was reviewed and approved by the disinterested members of the Company's board of directors. The Transaction shall be exempt from the formal valuation and minority approval requirements of Multilateral Instrument 61-101 as it represents less than 25% of the Company's market capitalization.

Read more at https://www.stockhouse.com/news/press-releases/2015/09/14/dynasty-settles-us-1-44-million-of-short-term-debt-by-way-of-share-issuance#l5AyQmrBG2liOqal.99

Kind of a meh move. I mean he did loan the company $2 million interest free, but to force repayment when shares are this low is like a major interest repayment plus some.

They did say it improves the company's liquidity but the money was owed to Washer, not to some third party that is going to call the loan. So either that is hogwash or they are looking at other credit facilities and having $2 million in short-term debt on the books was causing issues. It is interesting that rather than wipe out all of the $2 million, they wiped out $1.5 million with this share issuance. That suggests to me that they might have been told they need to wipe out that much to access other credit.

This could be in response to an actual need for credit facilities or as a backup plan in case the Fed raises rates and gold tumbles (very possible) later this week.