by Greg Klein | February 9, 2017
With a gold purchase agreement now complete, Golden Dawn Minerals TSXV:GOM has received US$3 million from RIVI Capital LLC, with another US$1 million due the week of February 20. In return the private equity firm would get a share of production from two mines in southern British Columbia’s Greenwood camp that Golden Dawn plans to restart.
The company will use the money to repay a bridge loan, for working capital and to close the acquisition of Kettle River Resources and its Greenwood-area portfolio. Golden Dawn completed a 43-101 technical report on the Kettle River properties last month.
RIVI would get 13.5% of gold from Golden Dawn’s planned Lexington and Golden Crown mines for $400 an ounce, up to a total of 15,000 ounces. After that, Golden Dawn would supply 6.75% of the mines’ gold production at $650 an ounce.
RIVI managing partner Kevin Puil joins Golden Dawn’s board. A chartered financial analyst with a degree in economics, Puil has held senior positions at firms including the Encompass Fund and Bolder Investment Partners, now Haywood Securities. He also serves as a director and member of the audit committee for three TSX companies.
Golden Dawn has a dewatering permit application in place for Lexington, which has been on care and maintenance since 2008. A 2016 resource estimate showed measured and indicated categories totalling 96,300 gold-equivalent ounces.
The company also has a work application underway to drill its Golden Crown property. Last year’s resource calculated 62,500 gold-equivalent ounces indicated and 13,100 ounces inferred. The past-producers sit within a 15-kilometre radius of Golden Dawn’s 200-tpd mill.
Among other Golden Dawn assets proximal to the mill is the May Mac project, for which the company released assays last month.
The properties are located about 500 kilometres east of Vancouver.