The stock traded at $2.51 by 11:30 a.m. ET Thursday, giving the US gold exploration company a market capitalization of $220.1 million.
In addition, Orion is also considering making a further equity investment that could increase the total proceeds to $8.8 million, said Dakota Gold in its press release.
Furthermore, the parties have entered into a royalty agreement, under which Orion will make a $182,758 payment to obtain a 1% net smelter return on certain properties held by Dakota Gold.
“Orion is a respected investor and lender in the mining industry and we value their support and look forward to continuing to work together as we revitalize the Homestake district,” Dakota Gold’s CEO Jonathan Awde stated.
The company’s properties currently cover approximately 194 sq. km. of the renowned Homestake district. Its main assets are the Maitland and Richmond Hill gold projects, on which both have confirmed mineralization.
The Maitland property is an important part of Dakota Gold’s exploration strategy, as it is 6 km northwest from the historic Homestake mine, which at one time was the largest and deepest mine in the Western Hemisphere. The project was acquired from Barrick Gold in 2020.