First Dynasty finds investor

Twin Star Holdings, part of the Sterlite group, has agreed to make a major investment in First Dynasty Mines (FDM-T), subject to due diligence and necessary approvals.

The Sterlite group produces and processes base metals and holds extensive interests in India, including a copper smelter and refinery and an aluminum mine and smelter.

Twin Star plans to make an initial investment of US$7.5 million through the purchase of 32.2 million units, each of which consists of one First Dynasty share and one warrant.

The exercise of the warrants is obligatory once project financing is arranged for the expansion of the Zod and Ararat gold projects in Armenia. This would bring Twin Star’s interest in First Dynasty to about 43%, and the value of its total investment to between US$16.9 million and $21 million.

First Dynasty owns 50% of the Armenian gold projects in a joint venture with the government. Current production is about 24,000 oz. gold per year, though the proposed US$35-million expansion is expected to boost this to 160,000 oz. annually within the next six months.