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Gold/Mining/Energy : Dayton Mining (DAY) on TSE & AMEX -- Ignore unavailable to you. Want to Upgrade?

To: Eashoa' M'sheekha who wrote (248)	7/14/1998 9:07:00 AM
From: Handshake™	Respond to of 568

Dayton news....(Don't expect any surprises :-) Tuesday July 14, 8:34 am Eastern Time Company Press Release Dayton Mining: Status of Bank Discussions and Operations Update VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--July 14, 1998-- Dayton Mining(TSE:DAY. - news; AMEX:DAY - news) On May 29, 1998 Dayton was requested by its syndicate of banks, led by Barclays Bank PLC and Banque Paribas, to cash collateralize the entire $36 million (US$25 million) of its outstanding project bank debt until after its Annual General Meeting and completion of renegotiations of the terms of the bank loan. Subsequently the banks have amended their request and have agreed with Dayton to only cash collateralize a total of $28.6 million (US$20 million) or $7.4 million (US$5 million) less than previously requested. This will be in effect until October 19, 1998, or the date the terms of the bank loan are renegotiated, whichever is the earlier. During this time the banks have agreed to waive the current events of default under the bank loan and reduce the interest rate charged on the entire facility to LIBOR plus 1.25 percent from LIBOR plus 2.375 percent. The cash collateralization will be completed within the next few days. At June 30, 1998 Dayton's cash position was approximately $52.5 million (US$35.7 million) and bank debt was $36.8 million (US$25 million) giving a net free cash position of $23.1 million (US$15.7 million) after giving effect to the cash collaterization. Bill Myckatyn, Chairman, President and CEO, recently returned from visiting the Andacollo minesite. Mr. Myckatyn states, ''I am very pleased with the progress being made at site. For a number of months we have been crushing less than the budgeted 18,200 tonnes (20,000 tons) per day. This has been partly due to excessive downtime due to scrap metal occurrences coming from the underground workings. We are now implementing a number of operational and maintenance improvements which will enable us to get to design very soon. ''The on-going lab tests show recoveries higher than those being used for our mine planning and those being achieved from the heap. We are therefore arranging for additional technical support in the area of gold recovery from the heap. We feel there is potential to increase heap recovery although it is too early to quantify the likely improvement. ''We continue to review the impacts of the lower than expected ore tonnage and grades encountered at Socorro and Churrumata. A comprehensive quality control process is underway on our assaying techniques and grade control practices and procedures in the mine. As part of this analysis the level of supervision on blasthole sampling has been dramatically increased. ''We continue to refine the reserve models and hope to update production schedules by the end of the third quarter. ''As an integral part of our growth strategy we have re-instituted discussions with various parties on potential business combinations.'' Dayton Mining Corporation holds a 100 percent interest in the Andacollo Gold Mine located in central Chile. The company trades on both the American Stock Exchange (AMEX) and Toronto Stock Exchange (TSE) under the trading symbol DAY. --------------------------------------------------------------------------------