Dynacor Group Inc. (TSX: DNG) (“Dynacor” or the “Company”) is pleased to provide an update on its plans to expand into West Africa and Latin America. All amounts are in U.S. dollars unless otherwise specified.
According to Industry sources, the expansion of operations into new jurisdictions is part of Dynacor’s five-year strategic plan and is intended to help the firm accomplish its goal of achieving 500,000 ounces AuEq of gold equivalent production and US$1 billion in revenues by 2030. To this end, the company plans to open four new processing plants: three of which will be located in West Africa (Senegal, Côte d’Ivoire and Ghana) and one in Latin America.
A solid foundation for growth
Over the past two years, Dynacor has done important preparatory work for its new facilities:
Structural – In each country, the Company has had positive discussions with government officials, mine regulators, suppliers and key artisanal miner groups. In parallel, the Company has undertaken extensive geological sampling to increase its understanding of the geology of artisanal mining in each country.
Financial – Based on the construction of its Chala facility in Peru and current calculations, Dynacor estimates that construction of a 300 tonnes per day (tpd) facility could cost between US$23 million and US$25 million and require working capital of between US$7 million and US$8 million. On February 6, 2025, the Company closed an upsized public offering for gross proceeds of approximately US$22 million (C$31.6 million). Dynacor intends to use its cash position and proceeds from financing to accelerate its expansion plans.
Leadership – Over the past year, Dynacor has strengthened its team globally to support its growth. In Montréal, the expansion of the management team has increased leadership capability and expertise in Africa. Daniel Misiano, the new COO, brings over 30 years of international business development experience in mining services, including in Africa. Martin Houde, the new Head of Metallurgy, has over 30 years of experience in industrial operations, construction and consulting in the mineral processing industry, nine of which were in West Africa. Ruth Hanna, in the new position of Director, Investor Relations (“IR”), brings 30 years of experience in IR and financial communications, including 12 years in mining companies with operations in Africa.
In Peru, Jorge Luis Cárdenas was appointed Vice-President of Business Development in Latin America for Dynacor. He brings with him 30 years of experience in the gold sector. In addition, an intensive succession planning process led to further strategic hiring in several areas. The company has also begun to set up language classes for its employees to help them communicate with Africa.
In Senegal, General Manager Mamadou Mbaye brings more than 25 years of experience in private equity and risk management, as well as in mining and energy investment projects in Africa. Benoît Courteau, General Manager of Dynacor in Côte d’Ivoire, has a long career in managing mining sites, industrial construction sites and production facilities, as well as in the biomass and industrial services industries, among others, in Africa. Discussions are currently taking place with potential country managers and partners in Ghana.
Goals for 2025
- Senegal – Following completion of the Environmental Impact Study, the Company has launched tenders for the 50 tpd pilot plant under its mining concession (see news release dated October 11, 2024). Construction of the pilot plant is estimated to cost US$4 million (excluding support infrastructure) and is expected to be completed no later than Q1-2026.
- Côte d’Ivoire/Ghana – The company aims to start preliminary work on the environmental impact study in at least one of the two countries.
- Latin America – Dynacor plans to explore its possible expansion within Peru or Ecuador.
