Dakota Gold Announces Pricing of Offering of Common Stock for Gross Proceeds of Approximately $35 Million
Dakota Gold Corp. (NYSE American: DC) has announced the pricing of its public offering of 12.4 million shares of common stock, expected to close around March 24, 2025. The offering will generate gross proceeds of approximately $35 million, potentially reaching $40 million if underwriters exercise their 30-day option to purchase up to 1.86 million additional shares.
BMO Capital Markets leads as book-running manager, with Canaccord Genuity as book-running manager and CIBC Capital Markets, RBC Capital Markets, Scotiabank, and Agentis Capital Markets Partnership serving as co-managers. The company plans to use the net proceeds for working capital and general corporate purposes.
Dakota Gold Corp. (NYSE American: DC) ha annunciato il prezzo della sua offerta pubblica di 12,4 milioni di azioni ordinarie, prevista per chiudere intorno al 24 marzo 2025. L'offerta genererà proventi lordi di circa 35 milioni di dollari, che potrebbero raggiungere i 40 milioni se i sottoscrittori esercitano la loro opzione di acquisto di 30 giorni per ulteriori 1,86 milioni di azioni.
BMO Capital Markets guida come manager principale dell'offerta, con Canaccord Genuity come manager principale e CIBC Capital Markets, RBC Capital Markets, Scotiabank e Agentis Capital Markets Partnership che fungono da co-manager. L'azienda prevede di utilizzare i proventi netti per il capitale circolante e per scopi aziendali generali.
Dakota Gold Corp. (NYSE American: DC) ha anunciado el precio de su oferta pública de 12,4 millones de acciones ordinarias, que se espera cierre alrededor del 24 de marzo de 2025. La oferta generará ingresos brutos de aproximadamente 35 millones de dólares, que podrían alcanzar los 40 millones si los suscriptores ejercen su opción de compra de 30 días para adquirir hasta 1,86 millones de acciones adicionales.
BMO Capital Markets actúa como gerente principal de la oferta, con Canaccord Genuity también como gerente principal y CIBC Capital Markets, RBC Capital Markets, Scotiabank y Agentis Capital Markets Partnership como co-gerentes. La empresa planea utilizar los ingresos netos para capital de trabajo y fines corporativos generales.
다코타 골드 주식회사 (NYSE American: DC)는 1,240만 주의 보통주 공개 발행 가격을 발표했으며, 2025년 3월 24일경에 마감될 예정입니다. 이번 발행은 약 3,500만 달러의 총 수익을 창출할 것으로 예상되며, 인수자가 30일 옵션을 행사하여 최대 186만 주의 추가 매입을 할 경우 4,000만 달러에 이를 수 있습니다.
BMO 캐피탈 마켓이 북런닝 매니저로서 주도하며, Canaccord Genuity가 북런닝 매니저로 참여하고 CIBC 캐피탈 마켓, RBC 캐피탈 마켓, 스코샤뱅크 및 에이전티스 캐피탈 마켓 파트너십이 공동 매니저로 활동합니다. 회사는 순수익을 운영 자본 및 일반 기업 목적으로 사용할 계획입니다.
Dakota Gold Corp. (NYSE American: DC) a annoncé le prix de son offre publique de 12,4 millions d'actions ordinaires, qui devrait se clôturer autour du 24 mars 2025. L'offre générera des produits bruts d'environ 35 millions de dollars, pouvant atteindre 40 millions si les souscripteurs exercent leur option d'achat de 30 jours pour acquérir jusqu'à 1,86 million d'actions supplémentaires.
BMO Capital Markets est le gestionnaire principal de l'offre, avec Canaccord Genuity également comme gestionnaire principal et CIBC Capital Markets, RBC Capital Markets, Scotiabank et Agentis Capital Markets Partnership en tant que co-gestionnaires. L'entreprise prévoit d'utiliser les produits nets pour le fonds de roulement et des fins d'entreprise générales.
Dakota Gold Corp. (NYSE American: DC) hat den Preis für ihr öffentliches Angebot von 12,4 Millionen Aktien bekannt gegeben, das voraussichtlich um den 24. März 2025 abgeschlossen wird. Das Angebot wird brutto Einnahmen von etwa 35 Millionen Dollar generieren, die auf bis zu 40 Millionen Dollar steigen könnten, wenn die Underwriter ihre 30-tägige Option zur Übernahme von bis zu 1,86 Millionen zusätzlichen Aktien ausüben.
BMO Capital Markets fungiert als Hauptbuchführer, während Canaccord Genuity ebenfalls als Hauptbuchführer auftritt und CIBC Capital Markets, RBC Capital Markets, Scotiabank und Agentis Capital Markets Partnership als Co-Manager fungieren. Das Unternehmen plant, die Nettoerlöse für Betriebskapital und allgemeine Unternehmenszwecke zu verwenden.
- Significant capital raise of $35 million with potential for $40 million
- Strong underwriting syndicate including major financial institutions
- Potential dilution for existing shareholders through 12.4 million new shares
- Additional dilution possible through 1.86 million share underwriter option
Insights
Dakota Gold's $35 million common stock offering represents significant dilution for existing shareholders. At the current
The pricing appears to be at market rate without premium, which is typically unfavorable for current investors. The company's vague designation of proceeds for "working capital and general corporate purposes" lacks strategic clarity compared to offerings that specify acquisition targets, debt reduction, or specific project funding.
While the underwriter lineup is impressive (BMO Capital Markets, Canaccord Genuity, CIBC, RBC, Scotiabank), suggesting institutional confidence, this doesn't offset the immediate dilutive impact. The absence of a detailed capital allocation strategy raises questions about whether this financing is opportunistic growth capital or necessary operational funding.
This dilution comes without a clear value-creation narrative to justify the shareholder impact, making it difficult for investors to assess whether the additional capital will generate sufficient returns to offset their reduced ownership percentage.
Capital raises are common in the mining sector, particularly for exploration and development companies like Dakota Gold that typically have revenue streams while requiring substantial ongoing investment. However, this
The lack of specific designated uses for the proceeds is particularly noteworthy. Mining companies typically raise capital for clearly defined purposes - advancing specific projects to production, funding exploration programs at promising properties, or acquiring new assets. The generic "working capital and general corporate purposes" language provides minimal insight into how Dakota Gold plans to deploy this capital to create shareholder value.
For junior mining companies, cash burn rates can be substantial during exploration and development phases. Without knowing Dakota Gold's current cash position, burn rate, or specific project advancement timelines, it's difficult to determine if this raise represents opportunistic strengthening of the balance sheet or a more urgent need for operational funding.
The mining sector's capital-intensive nature means dilution is often unavoidable, but the lack of strategic context for this particular offering raises concerns about value creation potential relative to the ownership dilution.
Lead, South Dakota--(Newsfile Corp. - March 20, 2025) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") today announced the pricing of its previously announced public offering of 12,400,000 shares of its common stock, par value
The gross proceeds to Dakota Gold from the Offering, before deducting expenses, will be approximately
The Company expects to use the net proceeds of the Offering for working capital and other general corporate purposes.
The Common Shares will be offered by the Company with BMO Capital Markets acting as lead book-running manager, Canaccord Genuity acting as book-running manager and CIBC Capital Markets, RBC Capital Markets, Scotiabank and Agentis Capital Markets Limited Partnership acting as co-managers (collectively, the "Underwriters").
Dakota Gold has also granted the Underwriters an option (the "Option") to purchase up to an additional 1,860,000 Common Shares representing up to
The Offering to the public in the United States is being made pursuant to the Company's effective shelf registration statement on Form S-3, including a base prospectus, previously filed with the Securities and Exchange Commission (the "SEC"). The Offering in the United States will be made only by means of a prospectus and related prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933, as amended. You may obtain these documents for free by visiting EDGAR on the SEC's website at www.sec.gov. Alternatively, copies of the preliminary prospectus supplement and the base prospectus may be obtained by contacting BMO Capital Markets Corp., Attn: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036.
This news release does not constitute an offer to sell or the solicitation of an offer to buy shares of Dakota Gold's common stock, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Dakota Gold Corp.
Dakota Gold is a South Dakota-based responsible gold exploration and development company with a specific focus on revitalizing the Homestake District in Lead, South Dakota. Dakota Gold has high-caliber gold mineral properties covering over 48 thousand acres surrounding the historic Homestake Mine.
For further information about Dakota Gold Corp., please contact:
Dr. Robert Quartermain
Co-Chair, Director, President and Chief Executive Officer
Tel: +1 778-655-9638
Carling Gaze
VP of Investor Relations and Corporate Communications
Tel: +1 605-679-7429
Email: info@dakotagoldcorp.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS OR INFORMATION
This communication contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include, but are not limited to, disclosure regarding the conduct of the Offering; the granting of the Underwriters' over-allotment option; and the anticipated use of proceeds from the Offering. In certain cases, forward-looking statements can be identified by the use of words and phrases or variations of such words and phrases or statements such as "anticipate," "expect" "plan," "likely," "believe," "intend," "forecast," "project," "estimate," "potential," "could," "may," "will," "would" or "should." These forward-looking statements are based on assumptions and expectations that may not be realized and are inherently subject to numerous risks and uncertainties, which could cause actual results to differ materially from these statements. For additional information regarding factors that may cause actual results to differ materially from those indicated in our forward-looking statements, we refer you to the risk factors included in Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by annual, quarterly and current reports that we file with the SEC, which are available at www.sec.gov. We caution investors not to place undue reliance on the forward-looking statements contained in this communication. These statements speak only as of the date of this communication, and we undertake no obligation to update or revise these statements, whether as a result of new information, future events or otherwise, except as may be required by law. We do not give any assurance that we will achieve our expectations.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/245514
FAQ
How much is Dakota Gold (DC) raising in their latest public offering?
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What is the underwriters' option in Dakota Gold's (DC) offering?
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