M&A

Dynasty Gold secures Teck's Thundercloud

Dynasty Gold says it’s acquiring 100% of Teck Resources’ interest in the Thundercloud gold project in Ontario.

Staff reporter
 An outcrop at Dynasty Gold’s Thundercloud project in Ontario

An outcrop at Dynasty Gold’s Thundercloud project in Ontario

Teck will retain a 2% net smelter returns royalty.

Dynasty said yesterday it had signed an amending agreement with Teck, deeming the junior to have exercised its option to acquire 100%, upon completing a cash payment of C$100,000.

It must also pay $2 million on a production decision and has granted Teck the right to 40% of any net sale proceeds if the property is sold or optioned within six years of the amending agreement.

"We appreciate Teck's cooperation and support as well as that of all other stakeholders since signing the option agreement," Dynasty president and CEO Ivy Chong said.

The original agreement in 2018 said Dynasty could exercise the option to earn 100% by spending $6 million over five years and issuing 1 million shares, with Teck retaining a back-in right to 65% of Thundercloud.

Historical drill results at the project include 3m at 14g/t gold and 0.55m at 192.7g/t.

Dynasty received a drill permit for Thundercloud in March.

It resumed exploration there this month after its trenching programme which began in July was suspended due to wildfires.

The company also has the Golden Repeat project in Nevada, and a 70% interest in the Hatu Qi-2 gold mine in China which is subject to a legal dispute with state-owned Xinjiang NonFerrous Metal Industry (Group).

Dynasty had about C$700,000 in working capital at June 30.

It had raised $531,450 in an over-subscribed private placement in April of units comprising a 17c share and a share purchase warrant at 25c.

Its shares (TSXV: DYG) have ranged from 6.5-35c over the past 12 months and closed down almost 12% yesterday to 15c, capitalising it at $5.3 million (US$4.2 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.