Revival Gold Engages Dundee Corporation for Strategic Investment
Revival Gold Engages Dundee Corporation for Strategic Investment
Revival Gold Inc. (TSXV: RVG, OTCQX: RVLGF) has taken significant steps forward by entering a strategic partnership with Dundee Corporation. This collaboration is designed to strengthen Revival Gold’s financial position and support the advancement of its key projects. Through a non-brokered agreement, Dundee Corporation has committed to purchasing 10 million units of Revival Gold, totaling a gross investment of CAD$3.2 million.
Details of the Investment Arrangement
Each unit consists of one common share of Revival Gold along with one-half of a common share purchase warrant. The exercise of each whole warrant will allow its holder to acquire an additional common share at an exercise price of CAD$0.45 over the next 24 months. This investment is pivotal as it provides Revival Gold with the capital necessary to keep progressing on its scheduled project developments.
About Dundee Corporation's Role
Dundee Corporation is a respected entity in the mining sector, known for its deep commitment to sustainable and value-driven investments. The investment will not only benefit Revival Gold financially but also strategically, as Dundee has cultivated expertise in successful mining ventures.
Use of Proceeds from the Placement
The funds secured through this placement will primarily be utilized to propel the ongoing development of Revival Gold’s flagship projects. The plan includes funding engineering and economic studies on the Mercur Gold Project, as well as exploration and permitting at the Beartrack-Arnett Gold Project. These steps are crucial for establishing Revival Gold as a leading player in the U.S. gold mining industry.
Future Collaborations and Commitments
In addition to the financial contribution, Revival Gold has agreed to grant Dundee a first right of refusal on any future equity financings. This means that Dundee will have an opportunity to maintain their proportional share in the company, solidifying an ongoing partnership. Furthermore, Revival Gold is excited about potential collaborations on metallurgical studies with Dundee’s subsidiary, Dundee Sustainable Technologies, which utilizes innovative technologies to enhance mineral processing.
Expansion Opportunities
Revival Gold has retained the option to upsize the placement by 15%, generating additional proceeds of CAD$480,000 if needed. This ability to increase funding ensures that the company has ample resources to tackle unexpected challenges and seize new opportunities that may arise during the development process.
Market Implications and Regulatory Approvals
The completion of the placement is contingent upon customary closing conditions, which include receiving necessary regulatory approvals, notably from the TSX Venture Exchange. Revival Gold anticipates closing this investment shortly, with expectations pointing to the end of February.
Revival Gold's Strategic Perspective
The leadership at Revival Gold, particularly President & CEO Hugh Agro, has expressed optimism regarding this strategic investment. The partnership with Dundee is expected to usher in invaluable insights and support that will enhance Revival Gold’s operational strategies and propel its growth trajectory.
Frequently Asked Questions
What is the purpose of Revival Gold's investment from Dundee Corporation?
The investment from Dundee Corporation aims to accelerate project development activities and support general working capital for Revival Gold.
How many units is Dundee Corporation purchasing?
Dundee Corporation is purchasing 10 million units of Revival Gold at a price of CAD$0.32 per unit.
What projects will the proceeds from the investment support?
The proceeds will primarily fund the Mercur Gold Project and ongoing developments at the Beartrack-Arnett Gold Project.
What rights does Dundee Corporation have concerning future financing?
Dundee Corporation has been granted a first right of refusal for any future equity financings for a term of six months.
How does Revival Gold plan to utilize its strategic partnership with Dundee?
Revival Gold plans to leverage Dundee’s expertise through collaborations on metallurgical studies and strategic input to enhance its project development efforts.
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