Dynacor Gold Mines entered into senior secured credit facilities in the aggregate amount of up to $10 million with Third Eye Capital (TEC) acting as agent for the lenders. The new credit facilities consist of a $7 million drawdown term loan facility and a $3 million revolving facility.

The term loan facility shall have a term of up to 36 months and bear interest at a rate of 10% per annum. The revolving facility will have a term of twelve months from the closing date, which may be extended for up to two additional periods of twelve months, and will bear annual interest at a rate of 8.5% or prime rate pkus 6% per annum, whichever is greater. The credit facilities can be reimbursed at any time without any penalties.

In conjunction with the loan, Dynacor has agreed to issue to TEC, for the ratable benefit of the lenders, 950,000 common share purchase warrants, each warrant being execisable at a price of C$1.83 per common share of Dynacor and expiring on January 14, 2019. Dynacor may accelerate the expiry time of the warrants if, at any time, the closing price of the common shares of Dynacor on the Toronto Stock Exchange is 15% or more above the exercise price for a period of 20 consecutive trading days.

The credit facilities will be utilized for the purposes of funding the completion of a new gold ore processing mill currently under construction (70% complete as of December 2015) in Chala, Peru, accretive growth in its ore-processing business and for working capital and general corporate purposes.

Montreal, Quebec-based Dynacor is a gold ore-processing and exploration company active in Peru since 1996. The company differentiates itself from pure exploration companies as it generates income from its wholly owned ore-processing plant.