Business
Dakota Gold Announces $6 Million Orion Mine Finance Investment with a Potential Increase To Up To $9 Million
Lead, South Dakota--(Newsfile Corp. - June 26, 2024) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") is pleased to announce an investme
About this update from Dakota Gold Corp.
[{"type":"text","content":" Lead, South Dakota--(Newsfile Corp. - June 26, 2024) - Dakota Gold Corp. (NYSE American: DC) (\"Dakota Gold\" or the \"Company\") is pleased to announce an investment of $6 million by OMF Fund IV SPV A LLC and OMF Fund IV SPV C LLC, entities managed by Orion Mine Finance Management LP (collectively, \"Orion\") in Dakota Gold. Jonathan Awde, President, CEO and a Director of the Company, commented: \"I am very pleased to announce our continued strategic partnership with Orion. Orion's ownership of Dakota Gold, together with their prior investment from 2023, will increase to a total of 9.9% share ownership. 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.\" Orion Equity Investment Orion has agreed to purchase 2,344,836 shares of common stock of Dakota Gold (each a \"Share\") at a price of $2.50 per Share for aggregate gross proceeds of $5.9 million (the \"Orion Equity Investment\"). The Company anticipates Orion will own approximately 9.9% of its issued and outstanding shares of common stock following the closing of the Orion Equity Investment. Orion remains supportive of the Company and is considering making a further equity investment thereby increasing the total aggregate gross equity proceeds to the Company to up to $8.8 million subject to market and other conditions, although Orion has not committed or otherwise agreed to any such further equity investment. The Orion Equity Investment will be registered under the Securities Act of 1933, as amended (the \"Securities Act\") pursuant to the Company's shelf registration statement on Form S-3 (File No. 333-266155), as supplemented by a prospectus supplement relating to the sale of the Shares (the \"Prospectus Supplement\"). The Orion Equity Investment is anticipated to close on or about July 3, 2024. Royalty Agreement In addition, Orion and the Company will enter into a royalty agreement for a 1% net smelter returns royalty over certain of the Company's properties (the \"Royalty\"). Dakota Gold will receive total consideration of $182,758.20 for the Royalty. This press release is for informational purposes only and is not an offer to sell nor the solicitation of an offer to buy any Shares, which is made only by means of a prospectus supplement and rela...