UPDATE: Dundee Acquires Ownership Stake in Big River Gold; Follows $4-Million Acquisition of Shares of Moneta Porcupine Mines
09:14 AM EST, 02/05/2021 (MT Newswires) -- Dundee Corp. (DC-A.TO) on Friday said it has acquired a 19.38% ownership stake in Australia-listed Big River Gold Limited for A$17.9 million.
Dundee said it acquired ownership or control of 340,000,000 ordinary shares and 8,160,000 options of Big River Gold. 160,000,000 of the shares were acquired through a brokered private placement at $0.05 per share for A$8 million. The company acquired another 180,000,000 shares from an arms length third party at $0.055 per share for A$9.9 million.
Dundee President and CEO Jonathan Goodman called the deal a "cornerstone investment," adding that Big River Gold's fully-permitted, construction-ready open pit Borborema gold project in Brazil "displays robust economics and withstood our rigorous technical due diligence stress testing" and that Big River Gold is "significantly undervalued."
Overnight Thursday, Dundee said it has acquired a larger stake in Moneta Porcupine Mines. The Toronto-based holding company for various mining assets said it has acquired 12,500,000 common shares of Moneta for $0.32 apiece, bringing the cost of the transaction to roughly $4-million. Dundee already owned 8.59% of Moneta on a partially diluted basis and this transaction brings the company's ownership stake in Moneta to 10.97% Dundee said it acquired the additional stake for investment purposes only.
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