Dundee Corporation Obtains Additional C$5 Million Under Amended and Restated Term Loan Facility

TORONTO, July 09, 2024 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A, DC.PR.B and DC.PR.D) (“Dundee” or the “Corporation”) announced today that it has entered into an amended and restated loan agreement dated July 9, 2024 (the “Amended and Restated Loan Agreement”) among the Corporation, as borrower, Dundee Resources Limited, as guarantor, and Earlston Investments Corp. (“Earlston”), as lender, pursuant to which Earlston has agreed to advance an additional C$5,000,000 to Dundee (the “Second Advance”). The Second Advance was advanced by Earlston to Dundee on July 9, 2024.

Outstanding obligations under the Amended and Restated Loan Agreement are guaranteed by Dundee Resources Limited and secured by a security interest over all present and after-acquired personal property of the Corporation and Dundee Resources Limited, including a pledge of the following: (i) 186,942,820 common shares of Reunion Gold Corporation held by Dundee Resources Limited (the “Reunion Shares”); and (ii) all shares to be received by Dundee Resources Limited in exchange for such Reunion Shares in connection with the plan of arrangement involving Reunion Gold Corporation, expected to be completed on or around July 15, 2024 pursuant to the terms of the arrangement agreement dated April 22, 2024 between G Mining Ventures Corp., Reunion Gold Corporation and 15963982 Canada Inc (such shares, together with the Reunion Shares, being the “Share Collateral”).

The Amended and Restated Loan Agreement provides that the Corporation shall use the proceeds of the Second Advance for general corporate purposes. Interest on outstanding loans under the Amended and Restated Loan Agreement will accrue: (i) at a rate equal to the greater of (a) The Toronto-Dominion Bank prime rate plus 1.95% per annum, and (b) 9.15% per annum, during the first 24 months of the applicable advance; and (ii) thereafter, at a rate equal to The Toronto-Dominion Bank prime rate plus 6.50% per annum. Outstanding advances under the Amended and Restated Loan Agreement will be repayable on February 27, 2026. The Corporation may voluntarily prepay all or any portion of the advance made by Earlston on December 27, 2023 at any time, together with all interest accrued thereon, without premium or penalty. At any time after January 9, 2025, the Corporation may voluntarily prepay all or any portion of the Second Advance, together with all interest accrued thereon, without premium or penalty. The Corporation must repay (i) periodically, if the value of the Share Collateral is not at least 250% of the outstanding principal amount of the advances under the Amended and Restated Loan Agreement plus overdue interest (if any), such amount as required to ensure the value of the Share Collateral is at least 250% of the outstanding principal amount of the advances under the Amended and Restated Loan Agreement plus overdue interest (if any), and (ii) if Dundee Resources Limited sells any of the Share Collateral in certain circumstances as set out in the Amended and Restated Loan Agreement, an amount equal to the specified proceeds of such sale.

ABOUT DUNDEE CORPORATION

Dundee Corporation is a public Canadian independent holding company, listed on the Toronto Stock Exchange under the symbol “DC.A”. Through its operating subsidiaries, Dundee Corporation is an active investor focused on delivering long-term, sustainable value as a trusted partner in the mining sector with more than 30 years of experience making accretive mining investments.

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Forward-Looking Statements

Forward-looking statements are included in this news release. These forward-looking statements are identified by the use of terms such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “predict”, “project”, “will”, “would”, and “should” and similar terms and phrases, including references to assumptions. Such statements may involve but are not limited to, Dundee’s plans, objectives, expectations and intentions, including Dundee’s expectations regarding the anticipated closing date of the plan of arrangement involving Reunion Gold Corporation, and other comments with respect to strategies, expectations, planned operations or future actions. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking statements cannot be relied upon due to, among other things, changing external events and general uncertainties of the business and its corporate structure. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons. The forward-looking statements contained herein are subject to change. However, Dundee disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required under applicable securities regulations.