The investment is made through two funds under the Orion Mine Finance Management portfolio.
Dakota Gold has received further backing from mining financier Orion Mine Finance Management in the form of a US$5.9 million equity investment. The financing will support the company’s gold exploration in the Homestake district of South Dakota.
The investment is being made through two funds under Orion’s portfolio. Together they will purchase 2.34 million Dakota Gold common shares at a price of US$2.50 each. At closing, Orion would have a 9.9% equity stake in the company.
Orion is also considering a new capital investment that could increase total revenue to $8.8 million, Dakota Gold said in its press release.
The parties have also entered into a royalty agreement, pursuant to which Orion will make a payment of US$182,758 to earn a 1% net smelter return on certain Dakota Gold properties.
“Orion is a respected investor and lender in the mining industry and we value their support and look forward to continuing to work together as we revitalize the Homestake District,” Dakota Gold CEO Jonathan Awde said in a news release.
The Company’s properties currently cover approximately 194 square kilometres of the renowned Homestake district. Its principal assets are the Maitland and Richmond Hill gold projects, both of which have confirmed mineralisation.
The Maitland property is an important part of Dakota Gold’s exploration strategy as it is located 6 km northwest of the historic Homestake Mine, once the largest and deepest mine in the Western Hemisphere. The project was acquired from Barrick Gold in 2020.
