Dynasty Metals says armed robbery at Ecuador gold mine

Mon Jul 23, 2012 3:21pm EDT
 
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(Reuters) - Canadian miner Dynasty Metals & Mining Inc said armed robbers made off with bars containing gold and silver at its Zaruma gold project in Ecuador, and warned the incident might have an adverse effect on its near-term production plans.

Armed robbers escaped with dore bars containing about 1,300 ounces of gold and 4,000 ounces of silver from the company's processing plant located in the El Oro province in southwestern Ecuador, the company said.

Dore bars are alloy bars of semi-pure gold and silver made at the mine site and are refined later.

Dynasty had about 1,200 ounces of gold contained in dore bars as of March 31, according to information on the company's website.

No employees were fatally injured and the company is in the process of filing an insurance claim, it said in a statement on Monday.

If the company fails to recover the stolen dore bars or does not receive sufficient insurance proceeds in a reasonable time period, there may be an adverse impact on its liquidity and operations, Dynasty said.

Shares of Vancouver-based Dynasty were down 5 percent at C$1.33 in late-afternoon trading on the Toronto Stock Exchange.

(Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)