Reunion Gold AcquisitionThis deal should add $0.43 to Dundee's net asset value (and hopefully share price) if current the Gmin share price and Spinco valuations hold.
Dundee hold 183M RGD shares and $12M warrants (0.39 exercise price). RGD getting aquired for stock at $0.65 or a $0.15 premium. Which is worth an additional $30M to dundee. Additionally Dundee will own 10% of a spinco that will be funded with cash from Gmin and hold reunion's non Oko assets. Spinco financed at a valuation of $75M (additional value to $7.5M to Dundee). The combined incremental value to Dundee as a result of the deal is $38.1M if share price of Gmin holds. Dundee has 89M sub voting shares outstanding so the deal should add $0.43 to Dundee's net asset value if my math is correct.
The deal also looks to de-risk for Dundee as Gmin is a larger company (backed by Franco Nevada) and should be cash flowing this year.
Press Release here:
https://stockhouse.com/news/press-releases/2024/04/22/g-mining-ventures-and-reunion-gold-announce-combination-to-set-the-stage-for-a