Dynacor Signs Share Purchase Agreement to Acquire Processing Plant and Assets in Ecuador
ACQUISITION TO MATERIALLY INCREASE NAMEPLATE PROCESSING CAPACITY
POTENTIAL TO UNLOCK ADDITIONAL VALUE THROUGH OPTIMISATION AND EXPANSION OF PURCHASING NETWORK
MONTREAL, July 08, 2025 (GLOBE NEWSWIRE) -- Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the "Corporation"), is pleased to announce it has signed a share purchase agreement to acquire Arkham Metals SAS (Ecuador) from Pelorus Minerals Limited, a wholly owned subsidiary of Arkham Metals Limited Australia. As previously announced, Dynacor will pay $9.75 million for 100% of the shares of the 1,500 tpd permitted processing plant. All amounts are in US dollars unless otherwise specified.
“Svetlana”, the newly acquired processing plant, is located in Portovelo, in the El Oro province of southern Ecuador. The carbon-in-pulp (CIP) plant was operated intermittently between 2011-2020, and has been in care and maintenance since Q2-2020. Under its international expansion plan, Dynacor will pay a total consideration of $25 million including the purchase price to upgrade the plant and prepare for ramp up to 300 tpd operating capacity in 2026. The transaction will be funded with proceeds from the $22.1 million financing carried out earlier this year.
Jean Martineau, President and CEO, said, “This acquisition in Ecuador is a first step and significant milestone in our journey to produce half a million ounces of gold. In addition to marking our transition into a geographically diversified gold processor, the acquisition of Svetlana would bring a material increase in our installed capacity. Importantly, the permitted plant offers a long runway to grow through optimisation and through expansion of its ore purchasing network. On behalf of the Dynacor team, I wish to thank our shareholders who have supported our growth ambitions and look forward to delivering on our value creation strategy.”
For more information, please view the presentation on “Svetlana” here.
Transaction Highlights
Consistent with plan to become a multi-asset gold processor: Strategic acquisition of Dynacor’s second processing plant, and first in Ecuador, that strengthens its presence in Latin America. “Svetlana” is a fully funded, permitted processing plant that, following initial ramp-up, is expected to increase annual production by approximately 75,000 AgEq ounces (300 tpd).
Quality CIP plant that leverages Dynacor’s unique knowhow: Provides an excellent fit with Dynacor’s skill set and multi-decade operation of a carbon-in-leach (CIL) plant in Peru.
Offers upside: The plant is built and permitted for 1,500 tpd but will initially be launched at 300 tpd. The purchase price includes the plant, mining fleet, and a relatively new tailings dam. The Corporation believes that its differentiated business model positions it strongly to meet the continued growth of the artisanal and small-scale gold mining (ASGM) market in Ecuador.
Location in the heart of Ecuador’s gold mining district: The plant’s location in the main gold processing region of Ecuador, a country with a rich ASGM history, provides a solid platform for growth.
Transaction Details
- Total consideration is $9.75 million, payable in cash.
- Closing of the share purchase agreement is expected on July 14, 2025.
About Dynacor
Dynacor Group is an industrial ore processing company dedicated to producing gold sourced from artisanal miners. Since its establishment in 1996, Dynacor has pioneered a responsible mineral supply chain with stringent traceability and audit standards for the fast-growing artisanal mining industry. By focusing on fully and part-formalized miners, the Canadian company offers a win-win approach for governments and miners globally. Dynacor operates the Veta Dorada plant and owns a gold exploration property in Peru. The company plans to expand to West Africa and within Latin America.
The premium paid by luxury jewellers for Dynacor’s PX Impact® gold goes to Fidamar Foundation, an NGO that mainly invests in health and education projects for artisanal mining communities in Peru. Visit www.dynacor.com for more information.
Forward-Looking Information
Certain statements in the preceding may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of Dynacor, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance as of the date of this news release.
Contact:
For more information, please contact:
Ruth Hanna
Director, Investor Relations
T: 514-393-9000 #236
E: investors@dynacor.com
Website: http://www.dynacor.com
Renmark Financial Communications Inc.
Bettina Filippone
T : (416) 644-2020 ou (212) 812-7680
E: bfilippone@renmarkfinancial.com
Website: www.renmarkfinancial.com
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