Dundee Corporation Obtains Additional C$5 Million Under Amended and Restated Term Loan Facility
July 09 2024 - 4:21PM
Dundee Corporation (TSX: DC.A, DC.PR.B and
DC.PR.D) (“
Dundee” or the
“
Corporation”) announced today that it has entered
into an amended and restated loan agreement dated July 9, 2024 (the
“
Amended and Restated
Loan Agreement”) among the Corporation, as
borrower, Dundee Resources Limited, as guarantor, and Earlston
Investments Corp. (“
Earlston”), as lender,
pursuant to which Earlston has agreed to advance an additional
C$5,000,000 to Dundee (the “
Second Advance”). The
Second Advance was advanced by Earlston to Dundee on July 9, 2024.
Outstanding obligations under the Amended and
Restated Loan Agreement are guaranteed by Dundee Resources Limited
and secured by a security interest over all present and
after-acquired personal property of the Corporation and Dundee
Resources Limited, including a pledge of the following: (i)
186,942,820 common shares of Reunion Gold Corporation held by
Dundee Resources Limited (the “Reunion Shares”);
and (ii) all shares to be received by Dundee Resources Limited in
exchange for such Reunion Shares in connection with the plan of
arrangement involving Reunion Gold Corporation, expected to be
completed on or around July 15, 2024 pursuant to the terms of the
arrangement agreement dated April 22, 2024 between G Mining
Ventures Corp., Reunion Gold Corporation and 15963982 Canada Inc
(such shares, together with the Reunion Shares, being the
“Share Collateral”).
The Amended and Restated Loan Agreement provides
that the Corporation shall use the proceeds of the Second Advance
for general corporate purposes. Interest on outstanding loans under
the Amended and Restated Loan Agreement will accrue: (i) at a rate
equal to the greater of (a) The Toronto-Dominion Bank prime rate
plus 1.95% per annum, and (b) 9.15% per annum, during the first 24
months of the applicable advance; and (ii) thereafter, at a rate
equal to The Toronto-Dominion Bank prime rate plus 6.50% per annum.
Outstanding advances under the Amended and Restated Loan Agreement
will be repayable on February 27, 2026. The Corporation may
voluntarily prepay all or any portion of the advance made by
Earlston on December 27, 2023 at any time, together with all
interest accrued thereon, without premium or penalty. At any time
after January 9, 2025, the Corporation may voluntarily prepay all
or any portion of the Second Advance, together with all interest
accrued thereon, without premium or penalty. The Corporation must
repay (i) periodically, if the value of the Share Collateral is not
at least 250% of the outstanding principal amount of the advances
under the Amended and Restated Loan Agreement plus overdue interest
(if any), such amount as required to ensure the value of the Share
Collateral is at least 250% of the outstanding principal amount of
the advances under the Amended and Restated Loan Agreement plus
overdue interest (if any), and (ii) if Dundee Resources Limited
sells any of the Share Collateral in certain circumstances as set
out in the Amended and Restated Loan Agreement, an amount equal to
the specified proceeds of such sale.
ABOUT DUNDEE CORPORATION
Dundee Corporation is a public Canadian
independent holding company, listed on the Toronto Stock Exchange
under the symbol “DC.A”. Through its operating subsidiaries, Dundee
Corporation is an active investor focused on delivering
long-term, sustainable value as a trusted partner in the mining
sector with more than 30 years of experience making accretive
mining investments.
FOR FURTHER INFORMATION PLEASE
CONTACT:
Investor and Media RelationsT: (416) 864-3584E:
ir@dundeecorporation.com
Forward-Looking Statements
Forward-looking statements are included in this
news release. These forward-looking statements are identified by
the use of terms such as “anticipate”, “believe”, “could”,
“estimate”, “expect”, “intend”, “may”, “plan”, “predict”,
“project”, “will”, “would”, and “should” and similar terms and
phrases, including references to assumptions. Such statements may
involve but are not limited to, Dundee’s plans, objectives,
expectations and intentions, including Dundee’s expectations
regarding the anticipated closing date of the plan of arrangement
involving Reunion Gold Corporation, and other comments with respect
to strategies, expectations, planned operations or future actions.
Forward-looking statements, by their nature, are based on
assumptions and are subject to important risks and uncertainties.
Any forecasts, predictions or forward-looking statements cannot be
relied upon due to, among other things, changing external events
and general uncertainties of the business and its corporate
structure. Results indicated in forward-looking statements may
differ materially from actual results for a number of reasons. The
forward-looking statements contained herein are subject to change.
However, Dundee disclaims any intention or obligation to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise, except as required under
applicable securities regulations.