Dakota Gold Corporate Update Following Successful Close of $35 Million Financing

Rhea-AI Summary

Dakota Gold Corp. (NYSE American: DC) has successfully completed a $35 million underwritten common stock offering, bringing its total cash position to over $47 million before expenses. The company is now fully funded through the completion of the Feasibility Study for its Richmond Hill Oxide Heap Leach Gold Project.

Following this financing, Dakota Gold will suspend its at-the-market equity program. The company has outlined key milestones including: the Richmond Hill Initial Assessment with Cash Flow targeted for mid-2025, a full Feasibility Study expected by mid-2026, and potential production as early as 2029. Drilling operations at Richmond Hill will commence on April 1, 2025, focusing on infill drilling and collecting metallurgical samples.

Additionally, at the Maitland Gold Project, the company is initiating a review of drilling data to outline initial resources for both the JB Gold Zone and Unionville Zone, providing long-term high-grade potential in the Homestake District.

Positive

• Secured $35M in financing, bringing total cash position to $47M
• Fully funded through Feasibility Study completion
• Richmond Hill is one of the largest undeveloped gold resources in the US
• Project located on private land with existing infrastructure
• Strategic location adjacent to operating Wharf Mine indicates potential for significant cash flow

Negative

• Production not expected until 2029
• Multiple regulatory steps still required including permitting process
• Feasibility Study completion not expected until mid-2026

Insights

Mining Finance Expert

Dakota Gold's $35 million financing represents a transformative capital raise that effectively addresses the primary risk factor facing junior mining companies - sufficient funding through critical development stages. With a strengthened treasury of over $47 million (before offering expenses), the company has successfully eliminated near-term financing uncertainty through the completion of its Richmond Hill feasibility study targeted for mid-2026.

The suspension of their ATM program is particularly significant as it removes a source of potential ongoing dilution that typically weighs on junior mining valuations. This signals management's confidence in their current cash position and demonstrates shareholder-friendly capital allocation principles.

Richmond Hill's development timeline with clear milestones (IACF in mid-2025, Feasibility Study by mid-2026, potential production by 2029) creates a structured path to producer status, with each milestone potentially re-rating the company's valuation. The project's location on private land in an established mining jurisdiction substantially reduces permitting and development risks compared to many competing projects.

The proximity to Coeur Mining's Wharf Mine provides an operational analog that enhances confidence in the potential technical and economic parameters for Richmond Hill. Meanwhile, the concurrent advancement of the Maitland project creates a balanced development pipeline combining near-term production potential with longer-term high-grade optionality.

With gold prices at record levels and the metal's recent designation as strategic under US policy, Dakota Gold is positioned to advance through development stages with potential regulatory tailwinds supporting the permitting process - a crucial advantage for mining projects in the current environment.

Lead, South Dakota--(Newsfile Corp. - March 25, 2025) - Dakota Gold Corp. (NYSE American: DC) ("Dakota Gold" or the "Company") is pleased to provide a corporate update following the close of its successful financing where it raised $35 million from an underwritten common stock offering (see March 20, 2025 News Releases). With the proceeds of the financing, the Company currently has a total of over $47 million in cash before expenses associated with the common stock offering, and is fully funded through the end of the Feasibility Study for the Richmond Hill Oxide Heap Leach Gold Project ("Richmond Hill" or "Project"). With its strong cash position, the Company will suspend its at-the-market equity program ("ATM Program") which the Company has used previously to offer and sell shares of common stock from time to time to generate working capital.

Richmond Hill is one of the largest undeveloped gold resources in the United States being advanced by a junior mining company. Once the Company completes its Feasibility Study on the Project, it expects to commence the permitting process where it could see potential production as early as 2029. With gold trading at record prices and now included as a strategic metal in the latest executive order from US President Trump, we anticipate resource projects that are on the development track to production will benefit from a positive government-supported permitting process.

Dakota Gold has outlined a clear path to reach commercial production with the next important catalyst being the Richmond Hill Initial Assessment with Cash Flow ("IACF") targeted for release in mid-2025. M3 is leading the group of subject matter consultants who will prepare the IACF. This will then proceed to preparation of a full Feasibility Study for the Project expected to be completed in mid-2026. Concurrently the Company is undertaking baseline environmental studies that will inform the future permitting requirements.

The Company expects to mobilize drills to Richmond Hill starting on April 1, 2025 to conduct infill drilling in the northwest corner of the Project where initial mining will be undertaken, and to collect metallurgical and hydrological samples.

Richmond Hill is located on private land, in a current mining jurisdiction that has existing infrastructure. These features are expected to reduce construction costs and timelines to potential production. Based on the operating parameters of the adjacent Wharf Mine of Coeur Mining, Richmond Hill has the potential to generate significant free cash flow, which would benefit all stakeholders including our shareholders, local communities and the State of South Dakota.

At the Maitland Gold Project ("Maitland"), the Company is engaging Mike Hester of IMC and Jeff Woods of Woods Processing to undertake a review of all drilling and database information collected to date at Maitland with the purpose of outlining an initial resource for both the JB Gold Zone (Homestake Banded Iron Formation) and the Unionville Zone (Tertiary mineralization). Maitland provides longer term high-grade optionality to the Company's project pipeline in the historic Homestake District.

The next few months will be exciting for Dakota Gold with drilling resuming and with the IACF soon to be published at a time of record high gold prices.

About Dakota Gold Corp.

Dakota Gold is expanding the legacy of the 145-year-old Homestake Gold Mining District by advancing the Richmond Hill Oxide Heap Leach Gold Project to commercial production, and outlining a high-grade underground gold resource at the Maitland Gold Project, both located on private land in South Dakota.

Subscribe to Dakota Gold's e-mail list at www.dakotagoldcorp.com to receive the latest news and other Company updates.

Shareholder and Investor Inquiries

For more information, please contact:
Dr. Robert Quartermain
Co-Chair, Director, President and Chief Executive Officer
Tel: +1 778-655-9638

Dr. Stephen O'Rourke
Co-Chair, Director and Managing Director
Tel: +1 605-717-2540

Carling Gaze
VP of Investor Relations and Corporate Communications
Tel: +1 605-679-7429
Email: info@dakotagoldcorp.com

Forward-Looking Statements

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. When used in this communication, the words "plan," "target," "anticipate," "believe," "estimate," "intend," "potential," "will" and "expect" and similar expressions are intended to identify such forward-looking statements. Any express or implied statements contained in this communication that are not statements of historical fact may be deemed to be forward-looking statements, including, without limitation: our expectations regarding additional drilling and modeling; our expectations for the improvement and growth of the mineral resources and potential for conversion of mineral resources into reserves; the timing for the S-K 1300 Initial Assessment with cash flow analysis, completion of a feasibility study, and/or permitting; our expectations regarding free cash flow and future financing, and our overall expectation for the possibility of near-term production at the Richmond Hill project. 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. These risks and uncertainties include, among others: the execution and timing of our planned exploration activities; our use and evaluation of historic data; our ability to achieve our strategic goals; the state of the economy and financial markets generally and the effect on our industry; and the market for our common stock. The foregoing list is not exhaustive. 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/245915

FAQ

When will Dakota Gold (DC) begin drilling operations at Richmond Hill?

Dakota Gold will commence drilling operations at Richmond Hill on April 1, 2025, focusing on infill drilling in the northwest corner and collecting metallurgical and hydrological samples.

What is the timeline for Dakota Gold's (DC) Richmond Hill project development?

The company targets mid-2025 for Initial Assessment, mid-2026 for Feasibility Study completion, with potential production starting in 2029.

How much funding did Dakota Gold (DC) secure in its recent offering?

Dakota Gold raised $35 million through an underwritten common stock offering, bringing total cash position to over $47 million before expenses.

What are the key advantages of Dakota Gold's (DC) Richmond Hill project location?

Richmond Hill is located on private land in an active mining jurisdiction with existing infrastructure, which should reduce construction costs and production timelines.

What development plans does Dakota Gold (DC) have for the Maitland Gold Project?

The company is reviewing drilling data to establish initial resources for both the JB Gold Zone and Unionville Zone, positioning Maitland as a long-term high-grade option.