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Highlights
- Revival Gold enters a non-brokered agreement with Dundee Corporation for CAD$3.2 million.
- Dundee will purchase 10,000,000 units, including common shares and warrants, to support project development.
- Revival Gold grants Dundee a first right of refusal for future equity financings and strategic collaboration.
Revival Gold Inc. (TSXV:RVG) is excited to announce that it has entered into a non-brokered agreement with Dundee Corporation (TSX: DC.A) through its wholly owned subsidiary, Dundee Resources Limited ("Dundee"). Under the terms of the agreement, Dundee has agreed to purchase 10,000,000 units of Revival Gold at a price of CAD$0.32 per Unit, for gross proceeds of CAD$3,200,000 (the "Placement").
Each Unit consists of one common share of Revival Gold (a "Common Share") and one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant will allow the holder to acquire one Common Share at an exercise price of CAD$0.45 for a period of twenty-four (24) months from the date of issuance. This strategic placement will not only strengthen Revival Gold's capital base but also enhance the company’s ability to accelerate its ongoing project development activities.
Dundee Corporation, a well-established TSX-listed mineral exploration and development investment corporation, has a strong track record in the mining sector, particularly in the precious metals industry. The proceeds from the Placement will be used by Revival Gold to advance its current project development, as well as for general working capital and corporate purposes.
As part of the agreement, Revival Gold has granted Dundee a first right of refusal for six months, allowing Dundee to participate in any future equity financings by the Company and maintain its pro-rata shareholding. Additionally, the two parties have agreed to collaborate on metallurgical studies utilizing proprietary technologies developed by Dundee’s subsidiary, Dundee Sustainable Technologies Inc. (“DST”). This collaboration is expected to enhance the technical and environmental aspects of Revival Gold's development initiatives.
Revival Gold also has the option to increase the Placement by up to 15%, potentially raising an additional CAD$480,000 (the “Upsized Placement”). Should the Placement close, Dundee will hold approximately 5% of Revival Gold’s issued and outstanding Common Shares on a non-diluted basis (excluding any Units issued under the Upsized Placement). Any securities issued as part of the Placement or Upsized Placement will be subject to a statutory four-month hold period.
Hugh Agro, President and CEO of Revival Gold, expressed his enthusiasm about the partnership, stating, "Dundee and its team of mining, finance, and ESG professionals, including President & CEO Jonathan Goodman, have played key roles in the creation of some of the world’s most successful precious metals businesses. We are pleased to welcome Dundee as a new strategic investor in Revival Gold and look forward to their valuable input on our strategic direction moving forward."
The Placement is subject to customary closing conditions, including the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The transaction is expected to close on or about February 28th, 2025, further positioning Revival Gold for continued growth and exploration success.
