TORONTO, Aug. 30, 2023 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) today announces that the Corporation’s wholly-owned subsidiary, Dundee Resources Limited (“DRL”), has elected to convert its equity interest in the Borborema gold project joint venture between Aura Minerals Inc. and DRL into a net smelter royalty (the “Royalty”).
Under the terms of the Royalty, DRL will earn a net smelter return royalty equivalent to 1.50% on the sale of any product containing economically recoverable minerals obtained from ore mined and removed from the Borborema project. The 1.50% net smelter return applies to the first 1,500,000 ounces of gold sold, then is reduced to 1.00% on the next 500,000 ounces of gold. Once the production threshold of 2,000,000 ounces of gold from the Borborema gold project has been reached, the Royalty will terminate in accordance with its terms.
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation commented: “The Royalty derisks Dundee and gives the Corporation a direct line of sight on anticipated future cash flow. The conversion to a royalty arrangement provides us with the opportunity to participate in upside in the Borborema project without any additional capital investment. Additionally, it showcases our support for Aura’s team, as they work toward advancing the fully permitted Borborema gold project through feasibility into production. We would like to thank our partner for their work on the Borborema gold project and look forward to their continued success.”
ABOUT DUNDEE CORPORATION:
Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.
FORWARD-LOOKING STATEMENTS:
This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Dundee’s current expectations regarding future events. Forward-looking information includes statements that use forward-looking terminology such as “may”, “could”, “would”, “will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”, “estimate”, “forecast”, “schedule”, “anticipate”, “believe”, “continue”, “potential”, “view” or the negative or grammatical variation thereof or other variations thereof or comparable terminology. Such forward-looking information includes, without limitation, statements with respect to anticipated future cash flow as a result of the Royalty and the opportunity for Dundee to participate in the upside in the Borborema project without any additional capital investment. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dundee’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors” in the Annual Information Form of Dundee for the year ended December 31, 2022 and subsequent filings made with Canadian securities regulators and the Toronto Stock Exchange. Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Corporation, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Although the Corporation has attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to the Corporation or that the Corporation presently believes is not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information, which speaks only as of the date made. Forward-looking information contained in this press release represents the Corporation’s expectations as of the date of this press release and are subject to change after such date. The Corporation disclaims any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
FOR FURTHER INFORMATION PLEASE CONTACT:
Investor and Media Relations
T: (416) 864-3584
E: ir@dundeecorporation.com
