Bullboard - Stock Discussion Forum Dundee Corp T.DC.A

Alternate Symbol(s): DDEJF

Dundee Corporation is a Canada-based holding company. Through its operating segments, the Company is a mining- focused investor primarily engaged in acquiring mineral resource assets. Its segments include mining investments, mining services, and corporate and others. Its asset base includes investments in precious and base metals projects across four continents. Its subsidiaries include Dundee... see more

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Dundee Corp > Reunion Gold Acquisition

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Post by Catscratch on Apr 22, 2024 9:14am

Reunion Gold Acquisition

This 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

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