Dakota Gold announces strategic partnership with Orion Mine Finance

On October 12, 2023, Dakota Gold Corp. ("Dakota Gold") announced it entered into a binding agreement with OMF Fund IV SPV C LLC, an entity managed by Orion Mine Finance ("Orion"), for an investment of US$17 million in Dakota Gold and a commitment from Orion for future financing support.

Orion Equity Investment

Pursuant to the binding agreement, Orion agreed to purchase 6,666,667 shares of common stock of Dakota Gold at a price of US$2.55 per share for aggregate gross proceeds of US$17 million. Following closing of the investment, it is anticipated that Orion will own approximately 7.78% of its issued and outstanding shares of common stock.

The investment is anticipated to close on or about October 20, 2023.

Royalty Agreement

At the closing of the equity investment, Orion and Dakota Gold will enter into a royalty agreement for a 1% net smelter returns royalty over certain of Dakota Gold's public land administered by the U.S. Forest Service or Bureau of Land Management. Dakota Gold will receive total consideration of US$1 million for the royalty, with US$75,000 paid at closing and the remaining US$925,000 paid by Orion based upon the achievement of certain development milestones.

Financing Support

In addition to the investment and royalty agreement, Orion also agreed to provide a non-binding proposal for up to US$300 million of financing support to Dakota Gold for the purposes of financing the construction and development of its assets, following the satisfaction of certain milestones, or for the acquisition of new assets.

In connection with the financing support, Orion will be granted a right to match the terms of any future financing of Dakota Gold, subject to certain exceptions.

Further information can be found on NewsFile’s website.

Dakota Gold is a South Dakota-based gold exploration and development company with a specific focus on revitalizing the Homestake District in Lead, South Dakota. It has high-caliber gold mineral properties covering over 46 thousand acres surrounding the historic Homestake Mine.

Orion Mine Finance Group is one of the world's leading mining-focused private equity businesses.