TORONTO, Sept. 21, 2022 (GLOBE NEWSWIRE) — Dundee Corporation (TSX: DC.A) (“Dundee” or the “Company”) is pleased to announce the closing of the previously announced transaction where Dundee Resources Limited (“Dundee Resources”), a wholly owned subsidiary of the Company will retain a 20 percent interest in Big River Gold Limited (“Big River”) through a joint venture arrangement with Aura Minerals Inc (“Aura”). The Supreme Court of Western Australia approved the acquisition of Big River on September 8, 2022.
Aura, a returns-focused mid-tier gold and copper producer, in partnership with Dundee Resources, expects to review the Project and complete a Feasibility Study (“Borborema FS”) in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI-43-101”) on the Borborema Project by early 2023. On a preliminary basis, and subject to completion and confirmation of the Borborema FS, the construction of the Borborema Project is expected to start in 2023 and production would be expected to commence in 2025.
As previously disclosed, Aura’s and Dundee Resources’ joint venture interest in the project will be held through an intermediate holding company (“Borborema Inc.”), and Dundee Resources will hold an indirect 20 percent equity interest in Borborema, Inc. as a result of the contribution of the shares of Big River previously held by Dundee Resources and a “top-up” cash subscription for shares in Borborema, Inc. of approximately US$2.5million.
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation commented: “I am pleased to announce the closing of this transaction and for Dundee to participate directly in any future cash flows of this high-quality, development stage mining project in Brazil. We are delighted to work closely with respected partner Aura, an exceptional, responsible, and ESG-minded operator with a great deal of experience and success operating in Brazil to develop the fully-permitted Borborema Gold Project and we look forward to updating the market on progress and timelines as Borborema, Inc. moves into development and production. This is clearly a transformational transaction for Dundee, and we are looking forward to our evolution toward becoming an emerging gold producer.”
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.
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Advisers and Counsel
Cassels, Brock, & Blackwell LLP is acting as Canadian legal adviser and Blackwall Legal LLP is acting as Australian legal adviser to Dundee Resources Limited.
Canaccord Genuity Corp. is acting as exclusive financial adviser, Gowling WLG (Canada) LLP is acting as Canadian legal adviser, and King & Wood Mallesons is acting as Australian legal adviser to Aura Minerals.
This press release contains “forward-looking information” within the meaning of applicable securities laws. 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 closing of the transaction; the plans and expectations with respect to timing of completion of the Borborema FS, exploration plans at Borborema, timing and completion of development at Borborema and the timing and level of production at Borborema; mine life at Borborema and other expectations, as well as any other statements related to potential production forecasts and any other statement that may predict, forecast, indicate or imply future plans, intentions, levels of activity, results, performance or achievements.
Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities for a discussion of some of the factors underlying forward-looking statements, which include, without limitation the ability of the Company to achieve its longer-term outlook and the anticipated timing and results thereof, the ability of the Company to successfully achieve business objectives, copper and gold or certain other commodity price volatility, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, the accuracy of any mineral reserve and mineral resource estimates, general economic conditions and other risks involved in the mineral exploration and development industry. If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in forward-looking information. Although the Company 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 Company or that the Company 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 Company’s expectations as of the date of this press release (or as of the date they are otherwise stated to be made) and are subject to change after such date. The Company 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.