IRVING, TX, Mar 12, 2014 (Marketwired via COMTEX) — (otcqb:DYNR) — DynaResource, Inc., (“DynaUSA”) along with DynaResource de Mexico SA de C.V. (“DynaMexico”), the 100% owner of the San Jose de Gracia Project in Sinaloa State, Mexico (collectively, the “Dyna Parties”) announce plans to consolidate legal actions against Goldgroup Mining, Inc. and Goldgroup Resources, Inc. (collectively, “Goldgroup”).
The Dyna Parties filed a petition against Goldgroup in the District Court of Dallas, Texas seeking, among other things, that Goldgroup be enjoined from: (1) using or disseminating DynaMexico’s confidential information and property; (2) asserting that Goldgroup owns a direct interest in the San Jose de Gracia Property; and, (3) claiming that Goldgroup is the operator of the San Jose de Gracia Project. Although Goldgroup challenged the jurisdiction of Texas, Goldgroup has acknowledged that it owns no direct interest in the San Jose de Gracia Property, and it has acknowledged that Mineras de DynaResource SA de C.V. (“Mineras”), DynaUSA’s 100% owned subsidiary, is the exclusive operator of the San Jose de Gracia Project. Additionally, recent developments in Mexico, including: (1) the signing of the Exploitation Amendment Agreement (“EAA”) between Mineras and DynaMexico; (2) the signing of a 20 year land lease agreement between Mineras and the Santa Maria Ejido Community surrounding the San Jose de Gracia Project; and (3) the acquisition by DynaUSA of a majority interest in DynaMexico; protect against Goldgroup’s wrongfully obtaining and/or disseminating confidential data and information of DynaMexico. These recent developments in Mexico provide that the Dyna Parties non-suit the Texas action without prejudice to asserting or consolidating claims in Mexico, as well as to contemplate additional claims or regulatory actions against Goldgroup in Canada.
Previously, the Dyna Parties have filed claims against Goldgroup in Mexico, including, without limitation, claims for theft of confidential data and property of DynaMexico, claims for issuing misleading and inaccurate disclosures and, claims related to Goldgroup’s asserting that it owns interests that it does not own.
No claims against Goldgroup have been retracted by the Dyna Parties; rather the Dyna Parties have consolidated claims to Mexico. The Dyna parties will continue to vigorously pursue all claims and potential damages against Goldgroup in Mexico, as well as to contemplate additional claims or regulatory actions against Goldgroup in Canada.
Mineras – Exclusive Operating Entity at San Jose de Gracia (DynaUSA Owns 100% of Mineras)
Under the provisions of Operating Agreements between Mineras de DynaResource S.A de C. V. (“Mineras”) and DynaMexico, including the Exploitation Amendment Agreement dated May 15, 2013 (“EAA”); Mineras is named the exclusive operating entity at the SJG Project. Under the provisions of the EAA, Mineras is granted the rights to finance, operate, maintain, explore and exploit the SJG Property. (See DynaUSA news release dated June 21, 2013.) DynaUSA owns 100% of Mineras.
DynaMexico Ownership – DynaUSA owns 80%
At a DynaMexico shareholder meeting, held on the second call for shareholder’s meeting on May 17, 2013 in Mazatlan, Sinaloa, Mexico, the attending shareholders unanimously approved the issuance of 300 Series B Shares of Variable Capital of DynaMexico to DynaUSA in exchange for the settlement of accounts payable by DynaMexico to DynaUSA. After the issuance and receipt of the 300 Series B Shares, DynaUSA holds 80% of the total outstanding Capital of DynaMexico. (See DynaUSA news release dated June 24, 2013.)
Mineras – 20 Year Land Lease Agreement
On January 6, 2014, Mineras entered into a 20 year land lease agreement (The “20 Year Land Lease”) with the Santa Maria Ejido Community (“SJG Ejido”) surrounding SJG.
The 20 Year Land Lease continues through 2033. It covers an area of 4,399 hectares surrounding the main mineral resource areas of SJG, and provides for annual lease payments by Mineras of $1,359,443 Pesos (approx. $104,250 USD), commencing in 2014. Additionally, under the description of the 20 Year Land Lease, Mineras expects to construct a Medical Facility at SJG in year 2014, and a Community Center in year 2015. (See DynaUSA News Release dated January 13, 2014.)
DynaMexico – Mining Permit
(Permission to Exploit and conduct mining activities at the San Pablo Area of San Jose de Gracia; Issued by the Federal Environmental Authority in Mexico-SEMARNAT)
On September 30, 2013, DynaMexico received from the Secretaria de Medio Ambiente Y Recursos Naturales, the Federal Environmental Authority in Mexico (“SEMARNAT”), the approval and permission which allows for the exploitation and mining activities at the San Pablo Area of SJG (“the Semarnat-SJG San Pablo Exploitation Permit”). Under the terms of the Semarnat-SJG San Pablo Exploitation Permit, DynaMexico is restricted to conducting exploitation activities within the San Pablo Area of SJG (as defined in the Map of the San Pablo area as submitted to Semarnat). (See DynaUSA News Release of October 3, 2013).
DynaMexico – Pilot Mill Permit
(Permission to Operate Pilot Mill Facility at SJG; Issued by the Federal Environmental Authority in Mexico-SEMARNAT)
On June 17, 2013 DynaMexico received from “SEMARNAT”, the approval and permission which allows for the rehabilitation and operation of the pilot mill facility at SJG (“the Semarnat-SJG Mill Permit”). Under the terms of the Semarnat-SJG Mill Permit, DynaMexico is responsible to maintain the SJG pilot mill facility, and including the adjacent tailings pond area, in compliance with the regulations described in la Norma Oficial Mexicana (“NOM-141-SEMARNAT-2003”). (See DynaUSA news release dated June 28, 2013.)
Mineras – Mine Plan and Mill Operations (Pilot Operations)
Mineras is conducting operations at SJG according to internally developed mine plans and through the internally designed SJG Pilot Mill Facility which was operated during the 2003-2006 period. There is no preliminary economic assessment report completed for SJG so the precise cutoff grade for underground mining has not yet been determined. The operations are being funded internally by Mineras and DynaUSA. The mine plan was developed from the block model of resources as defined in the DynaMexico NI 43-101 Mineral Resource Estimate (“See Current NI 43-101 Mineral Resource Estimate for SJG”, below); and from the analysis of underground mining works conducted in 2003-2006. The operations at SJG are managed by Keith W. Brogoitti, Vice-President of Mexico Operations for DynaUSA. Mineras has rehabilitated the San Pablo Mine area of SJG, and has refurbished the SJG Pilot Mill Facility and Mineras operatives will be delivering mineralized material mined from San Pablo to the SJG Mill Facility for subsequent processing and metallurgical testing. The SJG Pilot Mill Facility (a gravimetric-flotation circuit) is projected to process mineralized material from San Pablo in operations similar to those conducted by DynaMexico during the 2003-2006 Period. (See “DynaUSA-DynaMexico” below.)
DynaUSA – DynaMexico
DynaUSA (the “Company”) is a Resource Investment and Management Company based in Irving, Texas, with a current focus on the San Jose de Gracia Project in Sinaloa Mexico (“SJG”), targeting growth in the defining and future production of predominately gold resources. The Company formed DynaResource de Mexico S.A. de C.V. (“DynaMexico”) in March 2000 specifically for the purpose of acquiring and consolidating the SJG District; and it completed the consolidation of the entire SJG District to DynaMexico in 2003 (approx. 15 sq. km. at that time), with the exception of the San Miguel Mining Concession (7 Hectares, for which DynaMexico is proceeding towards accomplishing the transfer of title to DynaMexico, under previously signed sale and purchase agreements). During the period 2003-2006, DynaMexico conducted pilot production operations at the San Pablo area of SJG, reporting production results of: 18,250 Oz. Gold sold; 42,000 tons mill feed; average feed grades of 15-20 g/t Gold; and, average production costs of less than $175./Oz. Gold.
DynaResource Management Team
In a prior news release dated May 15, 2013, the Company announced: (1) the promotion of Dr. Jose Vargas Lugo to the position of President of Mexico Operations; and, (2) the appointment of Mr. Keith W. Brogoitti to the position of Vice-President of Mexico Operations.
Dr. Vargas is a Mexican National, has worked with DynaResource for over 12 years, and is an integral part of all operations in Mexico. Mr. Brogoitti has held various management positions with Ivanhoe Mines Ltd., Newmont, Bema Gold and Compania Minera Antamina; and He has worked as a technical consultant for Placer Dome, Noranda, Compania Minera Antamina, Kennecott, Phelps Dodge, Asarco and BHP. Mr. Brogoitti has extensive international work experience, including in Latin America.
In a prior news release dated September 19, 2013, DynaUSA announced the appointment of Mr. Chad Mooney to the position of Executive Vice President-Capital Markets. Mr. Mooney previously built a top 10 business at Smith Barney, and he reported directly to his mentor, Mr. Jamie Dimon, the current Chairman and CEO of JP Morgan Chase.
In a prior news release dated January 29, 2014, the Company announced the appointment of Mr. David S. Hall, CPA to the position of Executive Vice-President and Chief Financial Officer of DynaUSA. Mr. Hall was formerly the owner and CEO of the Hall Group CPA’s, a certified public accounting and auditing firm in Dallas, Texas, which served as the public auditing firm for DynaUSA since 2004.
Operator Mineras Accounts Receivable from DynaMexico
As of March 10, 2014, Operator Mineras reports a current accounts receivable from DynaMexico of $2,545,000 USD.
DynaMexico – President Holding General Powers of Attorney
The Chairman-CEO of DynaUSA, who also serves as the President of DynaMexico, holds broad powers of attorney (“POA’s”) for DynaMexico which were granted and ratified by the shareholders of DynaMexico in several written acts of the shareholders.
San Jose de Gracia (“SJG”)
The San Jose de Gracia District, currently covering an area of 69,121 Hectares, is 100% owned by DynaResource de Mexico, S.A. de C.V. (“DynaMexico”). DynaResource, Inc. (“DynaUSA”) currently holds 80% of the outstanding shares of DynaMexico.
In excess of one million ounces gold was reportedly produced from the SJG District in the early 1900’s, originating from high grade gold veins, including approximately 470,000 Oz. gold reportedly produced from the La Purisima area of SJG at an average gold grade of 66.7 g/t. In June 2010, the SJG Project was recognized by the State of Sinaloa as the most significant Gold Project in the State for the year 2010.
Current NI 43-101 Technical Report for DynaMexico – SJG
DynaResource, Inc. received from DynaMexico on March 28, 2012 a National Instrument 43-101 (“NI 43-101”) compliant Technical Report for the San Jose de Gracia Project (the “2012 DynaMexico Luna-CAM SJG Technical Report”, the “Technical Report”), and approved by DynaMexico, the 100% owner of SJG. The 2012 DynaMexico Luna-CAM SJG Technical Report was prepared by Mr. Ramon Luna, BS, P.Geo., of Servicios y Proyectos Mineros, Hermosillo, Mexico and a Qualified Person as defined under NI 43-101; and by Mr. Robert Sandefur, BS, MSc, P.E., a senior reserve analyst for Chlumsky, Armbrust & Meyer LLC, Lakewood, CO., and a Qualified Person as defined under NI 43-101. The 2012 DynaMexico Luna-CAM SJG Technical Report includes as Section Fourteen (14) a Mineral Resource Estimate for SJG as prepared by Mr. Sandefur (the “2012 DynaMexico-CAM SJG 43-101 Mineral Resource Estimate”, and, the “Mineral Resource Estimate”). The Company filed the Technical Report on SEDAR (www.sedar.com ) on March 28, 2012.
The Company received from DynaMexico on December 31, 2012, an updated NI 43-101 compliant (“NI 43-101”) Technical Report for the San Jose de Gracia Project (the “Updated 2012 DynaMexico Luna-CAM SJG Technical Report, and the “Updated Technical Report”). The Updated Technical Report was approved by DynaMexico, and filed by the Company with SEDAR on December 31, 2012. (See DynaUSA news release dated January 10, 2013.)
Current NI 43-101 Mineral Resource Estimate for SJG
The 2012 DynaMexico-CAM SJG Mineral Resource Estimate concentrates on four separate main vein systems at SJG: Tres Amigos, San Pablo, La Union, and La Purisima. The Mineral Resource Estimate includes Indicated Resources at: (1) Tres Amigos of 893,000 tonnes with an average grade of 4.46 g/t, totaling 128,000 Oz. Au; and (2) San Pablo of 1,308,000 tonnes with an average grade of 6.52 g/t, totaling 274,000 Oz. Au. The Mineral Resource Estimate also includes an Inferred Resource of 3,953,000 tonnes in aggregate for the four main vein systems, with an average grade of 5.83 g/t, totaling 741,000 Oz. Au. The Effective Date of the 2012 DynaMexico Luna-CAM SJG Technical Reports and including the 2012 DynaMexico-CAM SJG 43-101 Mineral Resource Estimate is February 6, 2012. The Mineral Resource Estimate is reported using a 2.0 g/t cut off grade for underground mining. As of the Effective Date of the Technical Reports and Mineral Resource Estimate, there is no economic assessment report completed for SJG so the precise cutoff grade for underground mining has not yet been determined.
On behalf of the Board of Directors of DynaUSA,
K.D. DIEPHOLZ; DynaResource, Inc; Chairman and CEO
IMPORTANT CAUTIONARY NOTE REGARDING CANADIAN DISCLOSURE STANDARDS
The Company is an “OTC Reporting Issuer” as that term is defined in Multilateral Instrument 51-509, Issuers Quoted in the U.S. Over-the-Counter Markets, promulgated by various Canadian provincial Securities Commissions.
Accordingly, certain disclosure in this news release or other disclosure provided by the Company has been prepared in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of United States securities laws. In Canada, an issuer is required to provide technical information with respect to mineralization, including reserves and resources, if any, on its mineral exploration properties in accordance with Canadian requirements, which differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) applicable to registration statements and reports filed by United States companies pursuant to the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended. As such, information contained in this news release or other disclosure provided by the Company concerning descriptions of mineralization under Canadian standards may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements of the SEC and not subject to Canadian securities legislation. This news release or other disclosure provided by the Company may use the terms “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”. While these terms are recognized and required by Canadian regulations (under National Instrument 43-101, Standards of Disclosure for Mineral Projects), the SEC does not recognize them. United States investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted to reserves. In addition, “inferred mineral resources” have a great amount of uncertainty as to their existence and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian securities legislation, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, although they may form, in certain circumstances, the basis of a “preliminary economic assessment” as that term is defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects. U.S. investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION
This News release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.
Certain information contained in this news release, including any information relating to future financial or operating performance may be deemed “forward-looking”. All statements in this news release, other than statements of historical fact, that address events or developments that DynaResource expects to occur, are “forward-looking information”. These statements relate to future events or future performance and reflect the Company’s expectations regarding the future growth, results of operations, business prospects and opportunities of DynaResource. These forward-looking statements reflect the Company’s current internal projections, expectations or beliefs and are based on information currently available to DynaResource. In some cases forward-looking information can be identified by terminology such as “may”, “will”, “should”, “expect”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “projects”, “potential”, “scheduled”, “forecast”, “budget” or the negative of those terms or other comparable terminology. Certain assumptions have been made regarding the Company’s plans at the San Jose de Gracia property. Many of these assumptions are based on factors and events that are not within the control of DynaResource and there is no assurance they will prove to be correct. Such factors include, without limitation: capital requirements, fluctuations in the international currency markets and in the rates of exchange of the currencies of the United States and Mexico; price volatility in the spot and forward markets for commodities; discrepancies between actual and estimated production, between actual and estimated reserves and resources and between actual and estimated metallurgical recoveries; changes in national and local governments in any country which DynaResource currently or may in the future carry on business; taxation; controls; regulations and political or economic developments in the countries in which DynaResource does or may carry on business; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits, diminishing quantities or grades of reserves; competition; loss of key employees; additional funding requirements; actual results of current exploration or reclamation activities; changes in project parameters as plans continue to be refined; accidents; labor disputes; defective title to mineral claims or property or contests over claims to mineral properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance or inability to obtain insurance, to cover these risks) as well as those risks referenced in the Annual Report for DynaResource available atwww.sec.gov . Forward-looking information is not a guarantee of future performance and actual results and future events could differ materially from those discussed in the forward-looking information. All of the forward-looking information contained in this news release is qualified by these cautionary statements. Although DynaResource believes that the forward-looking information contained in this news release is based on reasonable assumptions, readers cannot be assured that actual results will be consistent with such statements. Accordingly, readers are cautioned against placing undue reliance on forward-looking information. DynaResource expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.
For further information on DynaUSA and DynaMexico, please visit www.dynaresource.com or contact:
Brad J. Saulter, DynaUSA V.P. - Investor Relations
K.D. Diepholz, DynaUSA - Chairman / CEO
DynaResource de Mexico S.A. de C.V.-Presidente
Mineras de DynaResource S.A. de C.V.-Presidente
US. Telephone: 972-868-9066
SOURCE: DynaResource, Inc.
