Dynacor buys Peruvian tungsten mine
Dynacor Mines Inc., a gold miner based in Montreal, Canada, is raising $255,050 in a private placement of 1.7 million shares and warrants, immediately after the buying a tungsten mine in Peru for around $1.25 million. Under the terms of the purchase, Dynacor will pay $100,000 US up front and a final payment of $1.15 million for the Pasto Bueno mine, which was owned by a European company. The mine, which produces primarily tungsten but also contains copper, zinc, lead and silver, stopped operating in 2003 when tungsten prices fell because Chinese and Russian producers had flooded the market with cheap tungsten metal. However, prices have significantly recovered in the last few months from $50 to $160 US per metric ton. Dynacor Mines is an exploration and mining company that owns and operates the Acari gold mine in Peru. Tungsten is used to harden steel, produce metal cutting tools and drill bits, super alloys and in light bulbs.