Dynacor Enters into Non-Binding Letter of Intent Offer to Acquire Processing Plant and Assets in Ecuador
Dynacor Enters into Non-Binding Letter of Intent Offer to Acquire
Processing Plant and Assets in Ecuador
Montreal, March 31 , 2025 – Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the "Corporation"), is pleased
to announce that it has executed a conditional letter of offer and indicative terms (“The Offer”) with Pelorus
Minerals Limited, a wholly owned subsidiary of Arkham Metals Limited Australia, to acquire 100% of the shares
of Arkham Metals SAS (Ecuador) (“The Assets”) for a purchase price of $9.75 million. All amounts are in US
dollars unless otherwise specified.
The Offer is subject to a due diligence review and final approval from Dynacor’s Board of Directors.
Background
The Assets consist of a permitted carbon-in-pulp processing plant, situated on a 36.5-hectare land concession
in Portovelo, El Oro in southern Ecuador and with permitting for up to 1,500 tpd.
Starting over a year ago, the Corporation has carried out multiple visits, an in-house technical evaluation and
mandated an external audit by an engineering consultan cy firm . Dynacor believes that The Assets offer
significant potential to enhance its global operational capacity and support its strategic plan goal of producing
500,000 AuEq ounces and $1 billion in sales by 2030.
Dynacor estimates refurbishing costs of between $6 to $8 million to bring the plant into operation and an initial
$8 million in ore inventory for plant start-up. The Corporation expect s initial production from a 300-350 tpd
processing plant as of 12 months from closing of the transaction.
In sum, Dynacor estimates $25 million in total project costs over the coming 12 months, comprising capex, plant
refurbishing and working capital investment. The Corporation recently closed a $22.1 million financing (CA$31.6
million), with proceeds to be used for business opportunities in other jurisdictions and working capital.
Highlights of The Offer
• Purchase price of $9.75 million is less any dollar value of net liability included in The Assets’ financial
statements and is conditional on Dynacor’s full satisfaction with respect to legal, environmental,
technical, financial and fiscal due diligence and to final approval from the Dynacor Board of Directors .
• Purchase assets include the non-operating processing plant and all assets and necessary permits to
pursue operation of the plant under the following settlement conditions:
o A non-refundable $0.15 million exclusivity payment to be completed upon execution of th e
letter.
o A balance cash payment of $9.45 million will be due at the final settlement date following the
closing of the proposed transaction.
o An amount of $0.15 million will be withheld by the purchaser at the final settlement date
following the closing and for a period of 60 days to cover any additional liabilities or unforeseen
expenses discovered in the due diligence process.
o The purchase price is not conditional on any financing.
About Dynacor
Dynacor Group is an industrial ore processing company dedicated to producing gold sourced from artisanal
miners. Since its establishment in 1996, Dynacor has pioneered a responsible mineral supply chain with stringent
traceability and audit standards for t he fast-growing artisanal mining industry. By focusing on fully and part -
formalized miners, the Canadian company offers a win -win approach for governments and miners globally.
Dynacor operates the Veta Dorada plant and owns a gold exploration property in P eru. The company plans to
expand to West Africa and within Latin America.
The premium paid by luxury jewellers for Dynacor’s PX Impact® gold goes to Fidamar Foundation, an NGO that
mainly invests in health and education projects for artisanal mining communities in Peru. Visit www.dynacor.com
for more information.
Forward-Looking Information
Certain statements in the preceding may constitute forward-looking statements, which involve known and
unknown risks, uncertainties and other factors that may cause the actual results, performance, or
achievements of Dynacor, or industry results, to be materially different from any future result, performance or
achievement expressed or implied by such forward-looking statements. These statements reflect
management’s current expectations regarding future events and operating performance as of the date of
this news release.
Contact:
For more information, please contact:
Ruth Hanna
Director, Investor Relations
T: 514-393-9000 #236
Website: http://www.dynacor.com