Dundee takes a bigger stake in Big River
PERTH (miningweekly.com) – Canadian resource investor Dundee Goodman Merchant Partners has quietly increased its stake in ASX-listed Big River Gold to become a cornerstone investor in the company.
Dundee in December took a 9.1% shareholding in Big River Gold after taking up A$8-million worth of shares in Big River as part of the company’s larger A$20.4-million capital raise.
Big River on Monday announced that Dundee had now increased its shareholding in the company to 19.4% through an off-market purchase of 180-million shares from major shareholder Copulus Group, with the shares priced at 5.5c each.
Copulus Group retains an 18.7% shareholding in Big River following the transaction.
Big River has welcomed the further investment by Dundee, saying it reinforced the company’s long-held belief in the quality of its Borborema gold project.
A recently completed definitive feasibility study into the Brazilian project study estimated that it would produce some 729 000 oz of gold over a mine life of just over ten years, producing an average of 71 000 oz/y, and around 88 000 oz/y over the first four years of the mine life. The project would require a capital investment of $88-million, plus an $11-million contingency, with C1 cash costs estimated at $642/oz, and all-in sustaining costs at $839/oz over the mine life.
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