Dynacor Gold Mines (TSX: T.DNG, Stock Forum) Wednesday said it has begun the first preparative steps in view of the construction of its new 300 tpd gold ore-processing plant at Chala in Peru.
The company added that it is waiting for the final construction permit from the Ministry of Energy and Mines, after which the plant is expected to be commissioned in about eight months.
"We are very pleased to have taken the first steps towards the construction of our new mill. The obvious result with the new mill is an increase in revenues and production, and lower production costs. The Company's cash reserve at March 31, 2013 was at a historical high of $ 6.4 million and is still currently increasing due to our ore processing operations. We do not anticipate the need to raise capital from the markets to build our new facility in Chala. Management is currently negotiating a bank loan that should cover the Company's cash flow requirements during the construction. We are looking forward to building our new gold ore-processing plant and becoming one of the leading ore-processing companies in Peru," said Dynacor President and CEO Jean Martineau.