/NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE OR FOR
DISSEMINATION IN THE UNITED
STATES/
MONTREAL, Jan. 31,
2025 /CNW/ - Dynacor Group Inc. (TSX: DNG)
("Dynacor" or the "Corporation"), is pleased to announce
that, in connection with its previously announced "best effort"
agency offering (the "Offering"), it has entered into an amended
and restated agreement with Canaccord Genuity Corp. (the "Sole
Agent") pursuant to which the Corporation and the Sole Agent have
agreed to upsize the Offering to up to a total of 5,000,000 common
shares of the Corporation ("Common Shares") at a price of
C$5.50 per Common Share (the "Issue
Price") for total gross proceeds of up to approximately
C$27.5 million.
The Sole Agent has been granted an option (the "Over-Allotment
Option") by the Corporation to offer and sell up to an additional
number of Common Shares as is equal to 15% of the number of Common
Shares issued pursuant to the Offering at the Issue Price. The
Over-Allotment Option may be exercised in whole or in part to
purchase Common Shares as determined by the Sole Agent upon written
notice to the Corporation at any time up to 30 days following the
Closing Date (as defined below).
The Corporation intends to use the net proceeds of the Offering
mainly for the construction and development of a new ore processing
plant in Sénégal, secondly for preparatory construction work on
additional processing plants in Africa, other opportunities in Latin America, as well as for working capital
and for general corporate purposes.
A prospectus supplement to the Corporation's short form base
shelf prospectus dated January 28,
2025, will be filed by no later than February 3, 2025 with the securities regulatory
authorities in all provinces and territories of Canada. The securities being offered have not
been and will not be registered under the United States Securities
Act of 1933 and accordingly will not be offered, sold or delivered,
directly or indirectly within the United
States, its possessions and other areas subject to its
jurisdiction or to, or for the account or for the benefit of, a
U.S. person, except where an exemption from registration is
available. This news release is for information purposes only and
does not constitute an offer to sell or a solicitation of an offer
to buy any securities of the Corporation in any jurisdiction.
The Offering is expected to close on or about February 6, 2025, or such other date as the
Corporation and the Sole Agent may agree (the "Closing Date"), and
is subject to customary closing conditions and approvals of
applicable securities regulatory authorities, including the Toronto
Stock Exchange ("TSX").
About Dynacor
Dynacor is a dividend-paying industrial gold ore processor
headquartered in Montréal, Canada. The Corporation is engaged in gold
production through the processing of ore purchased from the
ASM (artisanal and small-scale mining) industry. Dynacor
operates in Peru where its management and processing teams have decades
of experience working with ASM miners. It also
owns a gold exploration property (Tumipampa) in the
Apurimac department.
The Corporation intends to expand its processing operations to other jurisdictions.
Dynacor produces environmental and socially responsible gold
through its PX IMPACT® gold program. A growing number of supportive
firms from the fine luxury jewelry, watchmaker and investment
sectors pay a small premium to our customer and strategic partner
for this PX IMPACT® gold. The premium provides direct investment to
develop health and education projects for our artisanal and
small-scale miner's communities.
Dynacor trades
on the Toronto Stock Exchange under the ticker
DNG and is ranked on the 2024 TSX30. The TSX30 is an annual ranking
of the 30 top-performing companies on Toronto Stock Exchange (TSX)
over a three-year period.
Forward-Looking Information
This press release contains forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws. All
statements, other than statements of historical facts, are
forward-looking statements, and subject to risks and uncertainties.
All forward-looking statements are based on our beliefs as well as
assumptions based on information available at the time the
assumption was made and on management's experience and perception
of historical trends, current conditions and expected future
developments, as well as other factors deemed appropriate in the
circumstances. No assurance can be given that these assumptions and
expectations will prove to be correct. Forward-looking statements
are not facts, but only predications and can generally be
identified by the use of statements that include phrases such as
"anticipate", "believe", "continue", "could", "estimate",
"foresee", "grow", "expect", "plan", "intend", "forecast",
"future", "guidance", "may", "predict", "project", "should",
"strategy", "target", "will" or similar expressions suggesting
future outcomes and in this press release relate to the filing of a
prospectus supplement, the closing of the Offering, the amount and
expected use of proceeds from the Offering and the approval of the
TSX.
Forward-looking information is not a guarantee of future
performance and involves a number of risks and uncertainties. Such
forward-looking information necessarily involves known and unknown
risks and uncertainties, including the relevant assumptions and
risks factors set out in Dynacor's most recent annual management
discussion and analysis filed on SEDAR+ at www.sedarplus.ca, which
may cause Dynacor's actual results to differ materially from any
projections of future results expressed or implied by such
forward-looking information. These risks, uncertainties and other
factors include, among others, the uncertain and unpredictable
condition of global economy. Any forward-looking information is
made as of the date hereof and, except as required by law, Dynacor
does not undertake any obligation to update or revise any
forward–looking statement as a result of new information,
subsequent events or otherwise.
No securities regulatory authority has either approved or
disapproved the contents of this press release.
SOURCE Dynacor Group Inc.
