Dakota Gold receives US$6M investment from Orion

Dakota Gold (NYSE American: DC) has received further backing from mining financier Orion in the form of a US$5.9 million equity investment. The funding will support the company's gold exploration in the Homestake district of South Dakota.

The investment is made through two funds under the Orion Mine Finance Management portfolio. Together they will purchase 2.34 million common shares of Dakota Gold at a price of US$2.50 each. Upon closing, Orion would have a 9.9% equity ownership in the company.

The stock traded at US$2.51 by 11:30 a.m. ET Thursday, giving the U.S. gold exploration company a market capitalization of US$220.1 million.

In addition, Orion is also considering making a further equity investment that could increase the total proceeds to US$8.8 million, said Dakota Gold in its press release.

Furthermore, the parties have entered into a royalty agreement, under which Orion will make a US$182,758 payment to obtain a 1% net smelter return on certain properties held by Dakota Gold.