Entities managed by Orion Mine Finance Management have invested $6-million in exploration and development company Dakota Gold.
Orion’s ownership of Dakota, together with its prior investment from 2023, will increase to a 9.9% share ownership, reported Dakota president, CEO and director Jonathan Awde.
“Orion is a respected investor and lender in the mining industry and we value their support,” he commented.
Orion has agreed to purchase 2 344 836 shares of common stock of Dakota Gold at $2.50 a share for aggregate gross proceeds of $5.9-million. Orion is considering making a further equity investment, increasing the total aggregate gross equity proceeds to the company to $8.8-million subject to market and other conditions.
In addition, Orion and the company will enter into a royalty agreement for a 1% net smelter return royalty over certain properties. Dakota Gold will receive total consideration of $182 758.20 for the royalty.
Dakota is aiming to revitalise the Homestake district in Lead, South Dakota.