Dynacor Group Announces US$20 Million Gold Purchase and Prepayment Facility
Dynacor secures non-dilutive prepayment to fund working capital as its Ecuador plant approaches first gold production.
Dynacor Group Inc. (DNG) has entered into an unsecured US$20.0 million Gold Purchase and Prepayment Facility with Auramet International, Inc. The proceeds are designated for working capital, specifically to build inventory for the Svetlana plant in Ecuador during its final refurbishment and ramp-up phase. The facility allows for spot, forward, in-process, and prepayment sales of gold produced by subsidiaries, revolving up to the $20.0 million cap over a two-year term.
An operational update confirms that first ore was crushed at Svetlana in late October 2026, with plant rehabilitation 82% complete and on budget. Hot commissioning is delayed to December 2026 due to extended delivery timelines for the cyclone cluster and additional refurbishment of the elution and refinery circuits. First gold pour is targeted for January 2027, with initial operations at 300 tonnes per day (tpd) ramping to 500 tpd.
Year-to-date capital expenditure stands at $10.7 million spent and $4.0 million committed against a full-year projection of $22.0–$25.0 million. Third-quarter 2026 financial and operational results are expected on or about November 12, 2026.
Dynacor Group Inc. (DNG) has secured a standard, non-dilutive working capital facility to support its processing plant, which is in the final stages of refurbishment. The financing provides necessary liquidity to bridge the gap between the completion of capital expenditures and first gold production.
The company has shifted its hot commissioning timeline to December 2026, a minor operational delay that aligns with its previously guided January 2027 date for first gold pour. This adjustment does not represent a fundamental setback to the project's development.
Market participants appear to have already priced in the Svetlana ramp-up timeline. Since early October, the stock has traded in a tight range between $5.00 and $5.30, indicating that the news was expected and does not serve as a surprise catalyst.
The reliance on a gold prepayment facility to fund working capital inventory highlights the cash burn inherent in the ASGM processing model during ramp-up phases. This structure warrants close monitoring of the implicit cost of capital embedded in the prepayment terms.
Dynacor Group Inc. (DNG) is a gold processing company focused on producing traceable, responsibly sourced gold from formalized artisanal and small-scale miners (ASMs). The company’s core assets include the Veta Dorada plant in Peru, the Galam 50-tpd pilot plant in Senegal, and the Svetlana processing plant in Ecuador.
The business model relies on purchasing ore from permitted ASMs, processing it through centralized plants, and selling PX Impact® gold at a premium that funds community health and education projects via the Fidamar Foundation. International expansion into Senegal and Ecuador is designed to diversify geographic risk and scale processing capacity beyond Peru.