1. Dundee Corp plans to sell 24.48 million units for C$97.92 million. 2. Units consist of New Found shares and purchase warrants for additional shares. 3. Proceeds will enhance Dundee's liquidity and corporate purposes. 4. Dundee's ownership in New Found will drop to approximately 3.6% post-sale. 5. Future plans may change based on market and financial conditions.
FAQ
Why Neutral?
The transaction provides liquidity but dilutes Dundee's position in New Found. Historical trends show that sales of large stakes often lead to short-term price stagnation.
How important is it?
While the transaction is significant, its immediate effects on stock prices are likely muted due to dilution. Investor sentiment may vary based on how Dundee reinvests the capital.
Why Short Term?
The immediate effects will be felt upon completion, with potential market reactions in the ensuing weeks. Long-term impacts depend on how Dundee utilizes the capital.
Dundee Corporation Announces Sale of New Found Gold Corp. Units for Up to C$159.1 Million
Stock Symbol: DDEJF
Deal Summary
On December 8, 2025, Dundee Corporation, a prominent mining-focused holding company listed under the symbol DDEJF, announced a significant sale transaction involving 24,480,000 units of New Found Gold Corp. at a price of C$4.00 per unit. This arrangement, facilitated by BMO Capital Markets Inc. and SCP Resource Finance LP, will result in gross proceeds of approximately C$97,920,000.
Each unit comprises one common share of New Found and half of a common share purchase warrant, allowing the holder to acquire an additional share at an exercise price of C$5.00. Should all warrants be exercised, the total gross proceeds could reach a maximum of C$159,120,000.
Implications of the Sale
The block trade for these Unit Shares will be executed in Canada, while the Warrants will be available through private placement. In the United States, both Unit Shares and Warrants will similarly be offered through private placements.
Jonathan Goodman, President and CEO of Dundee Corporation, commented on the deal, stating, "Monetizing this position enables us to redeploy capital into opportunities that strengthen our cash generation profile, while our retained warrant position preserves meaningful participation in the company's future growth."
Ownership and Future Prospects
Upon completion of the sale transaction, Dundee will retain 12,242,569 common shares and 7,655,829 warrants of New Found. This reduces Dundee’s ownership stake from approximately 10.8% to about 3.6% on an undiluted basis. Notably, there is a 60-day lock-up period for the remaining shares.
- Pre-transaction ownership: 36,722,569 shares
- Post-transaction ownership: 12,242,569 shares
- Potential maximum proceeds from exercised warrants: C$61,200,000
Disclosure and Compliance
Dundee Corporation emphasizes that the securities involved in this transaction have not been registered under the U.S. Securities Act and cannot be sold in the United States without compliance with regulatory requirements. An early warning report will be filed under National Instrument 62-103 following the closing of the sale.
About Dundee Corporation
Dundee Corporation is a public Canadian holding company focused on the mining sector, primarily involved in acquiring mineral resource assets. The firm aims to unlock value through strategic investments globally and conducts thorough due diligence to assess the viability of potential projects.
Forward-Looking Statements
This press release contains forward-looking statements regarding Dundee’s expectations concerning the Completion of the Sale Transaction and its potential benefits. Words such as "expect," "anticipate," and similar expressions indicate these forward-looking statements.