TORONTO, Oct. 21, 2021 (GLOBE NEWSWIRE) -- Dundee Corporation (TSX: DC.A) (the “Corporation” or “Dundee”) is pleased to announce that its approximately 88%-owned subsidiary, Blue Goose Capital Corp. (“BGCC”) has closed the previously announced sale of the shares (the “Transaction”) of The Blue Goose Cattle Company Ltd. (“BG Cattle”). The gross proceeds from the Transaction will be used by BGCC to repay existing indebtedness of approximately $39 million, certain indebtedness owing to Dundee, closing and other costs.
Jonathan Goodman, President and Chief Executive Officer of Dundee Corporation, commented, “The sale of BG Cattle is another milestone for Dundee and shows clear execution on our plan to rationalize our portfolio of non-core assets. This sale is integral to Dundee’s overall transformation into a disciplined, mining-focused investment company that delivers long-term, sustainable value.”
Mr. Goodman continued, “We expect the sale of BG Cattle to benefit Dundee in a number of ways. The proceeds from this divestiture significantly deleverages Dundee’s balance sheet, makes strong inroads to further rationalizing our capital structure, and allows our management team to spend more time on our core mining investment business.” Mr. Goodman concluded, “We will use this positive momentum to continue to look for opportunities to accelerate further rationalization of our non-core legacy portfolio.”
The aggregate adjusted gross proceeds from the Transaction were $63 million. $6.0 million of the purchase price is being held in escrow pending settlement of the working capital and cattle count adjustments, and to secure certain of the representations, warranties and covenants made by BGCC under the share purchase agreement.
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.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking information. This forward-looking information is 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 expectations, including the objective of accelerating the Corporation’s strategic objectives. Forward-looking statements, by their nature, are based on assumptions and are subject to important risks and uncertainties. Any forecasts, predictions or forward-looking information 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 information may differ materially from actual results for a number of reasons. The forward-looking information contained herein is subject to change. However, Dundee disclaims any intention or obligation to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable law.
FOR FURTHER INFORMATION PLEASE CONTACT:
NATIONAL Public Relations
T: (416) 433-2801
© 2021 GlobeNewswire, Inc. All Rights Reserved.