Business
Dakota Gold Announces Strategic Partnership with Orion Mine Finance for $17 Million
Lead, South Dakota--(Newsfile Corp. - October 12, 2023) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") is pleased to announce it has e
About this update from Dakota Gold Corp.
[{"type":"text","content":" Lead, South Dakota--(Newsfile Corp. - October 12, 2023) - Dakota Gold Corp. (NYSE American: DC) (\"Dakota Gold\" or the \"Company\") is pleased to announce it has entered into a binding agreement with OMF Fund IV SPV C LLC, an entity managed by Orion Mine Finance (\"Orion\"), for an investment of $17 million in Dakota Gold and a commitment from Orion for future financing support. Jonathan Awde, President, CEO and a Director of the Company commented: \"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.\" Orion Equity Investment Orion has agreed to purchase 6,666,667 shares of common stock of Dakota Gold (each a \"Share\") at a price of $2.55 per Share for aggregate gross proceeds of $17 million (the \"Orion Equity Investment\"). The Company anticipates Orion will own approximately 7.78% of its issued and outstanding shares of common stock following the closing of the Orion 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 October 20, 2023. Financing Support 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 (the \"Financing Support\"). In connection with the Financing Support, Orion shall 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 millio...