Dundee closes Borborema royalty sale

Executive Summary

• Dundee Corp. has closed the previously announced sale of its royalty interest in the Borborema gold project to Gold Royalty Corp.
• The transaction was completed for an aggregate purchase price of $45 million (U.S.), consisting of $30 million in cash and $15 million in common shares of Gold Royalty.
• Management states the transaction strengthens the balance sheet, delivers NAV accretion, and aligns with a strategy to crystallize value and redeploy capital.

Key Details

• Transaction Counterparties: Seller is Dundee Corp.; Buyer is Gold Royalty Corp.
• Asset Sold: Royalty interest on the Borborema gold project.
• Total Consideration: $45 million (U.S.).
• Cash Component: $30 million (U.S.).
• Equity Component: $15 million (U.S.) in common shares of Gold Royalty Corp.
• Share Price: The equity portion was issued at $4.20 (U.S.) per share.
• Strategic Rationale: CEO Jonathan Goodman described the move as a "disciplined step" to crystallize value, strengthen the balance sheet, and redeploy capital into opportunities generating sustainable future cash flow.
• Shareholder Impact: The company claims the transaction delivered NAV accretion for shareholders.
• Valuation View: Management highlighted that the intrinsic value of Dundee's portfolio continues to materially exceed its current market capitalization, reinforcing their view that the company remains significantly undervalued.

Notable Quotes

• "The closing of the sale of the Borborema royalty represents a disciplined step in our ongoing strategy to crystallize value and redeploy capital into opportunities that we believe can generate sustainable future cash flow for Dundee through mining operations." — Jonathan Goodman, President and CEO, Dundee Corp.
• "With the transaction now closed, we have strengthened our balance sheet further and delivered NAV accretion for shareholders." — Jonathan Goodman, President and CEO, Dundee Corp.