Published: October 26, 2023 |

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Dakota Gold has closed on the binding agreement with an entity managed by Orion Mine Finance for an investment of $17 million in Dakota Gold and a commitment from Orion for future financing support.

“I am very pleased to announce our strategic partnership with Orion. Robert Quartermain, Dakota Gold’s co-chair, and I have worked with Orion previously, and we welcome the opportunity to continue our relationship with Orion, a respected investor and lender in the mining industry. We value Orion’s support and look forward to working with our new partner as we revitalize the Homestake District,” said Jonathan Awde, president, CEO, and a director of Dakota Gold.

Orion has agreed to provide a non-binding proposal for up to $300 million of financing support to the company for the purposes of financing the construction and development of the company’s assets, following the satisfaction of certain milestones, or for the acquisition of new assets by the company. In connection with the financing support, Orion will be granted a right to match the terms of any future financing of the company. Orion’s matching right does not include any equity or convertible debt offering conducted by the company on a non-brokered basis or conducted by banks or brokers with aggregate proceeds of up to $200 million (of which no more than $50 million may be in the form of unsecured convertible debt), including equity issuances from the company’s at-the-market offering program.

At the closing of the Orion equity investment, Orion and the company entered into a royalty agreement for a 1 percent net smelter returns royalty over certain of the company’s public land that is administered by the U.S. Forest Service or Bureau of Land Management. The royalty excludes the company’s private land, where Dakota Gold is currently active with four drills at its Maitland and Richmond Hill projects, as well as certain claims forming part of the company’s Blind Gold project. Dakota Gold will receive total consideration of $1 million for the royalty, with $75,000 paid at closing and the remaining $925,000 paid by Orion based upon the achievement of certain development milestones.

Dakota Gold is a South Dakota-based responsible gold exploration and development company with a specific focus on revitalizing the Homestake District in Lead, South Dakota. Dakota Gold has high-caliber gold mineral properties covering over 46 thousand acres surrounding the historic Homestake Mine. The Dakota Gold team is focused on new gold discoveries and opportunities that build on the legacy of the Homestake District and its 145 years of gold mining history.

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