Gold Developer Unlocks Strategic Metal Potential in Historic District
Dakota Gold Corp. (DC:NYSE American) successfully closes on its financing to raise US$35 million from an underwritten common stock offering. Read why one analyst says this year will be "transformational" for the company.
Dakota Gold Corp. (DC:NYSE American) announced it has successfully closed on its financing to raise US$35 million from an underwritten common stock offering.
In a release, the company said that before expenses from the offering, it now has more than US$47 million in cash and is fully funded through the end of the feasibility study for its Richmond Hill project in South Dakota's historic Homestake District.
"Richmond Hill is one of the largest undeveloped gold resources in the United States being advanced by a junior mining company," Dakota said in the release. "Once the company completes its feasibility study on the project, it expects to commence the permitting process where it could see potential production as early as 2029."
Dakota said with that strong cash position, it will suspend its at-the-market equity program (ATM Program) which the Company has used previously to offer and sell shares of common stock from time to time to generate working capital.
This follows the announcement of a "transformational" resource focused on heap leachable gold at Richmond Hill and further positive drill results from the project.
In a Feb. 26 research note, BMO Analyst Andrew Mikitchook highlighted key points from Dakota President and Chief Executive Officer Robert Quartermain's presentation at BMO Capital Markets' recent Global Metals, Mining and Critical Minerals Conference.
"2025 is shaping up to be a transformational year for Dakota Gold as the company moves to become a developer establishing a pathway to production," Mikitchook wrote.
Mikitchook rates the stock Outperform with a US$7.50 per share target price, a 148% return for investors at the time of the report.
Revitalizing the Historic Homestake District
In its new release, Dakota said it anticipated resource projects on the track to production will benefit from recent executive orders by U.S. President Donal Trump adding gold as a strategic metal.
The company said it has outlined a clear path to reach commercial production with the next important catalyst being the Richmond Hill Initial Assessment with Cash Flow targeted for release in mid-2025. A full feasibility study is expected mid-2027.
Dakota said it is concurrently undertaking baseline environmental studies to inform permitting requirements. It expects to mobilize drills to Richmond Hill starting on April 1 to conduct infill drilling in the northwest corner of the project, where initial mining will be undertaken, and to collect metallurgical and hydrological samples.
Mikitchook rates the stock Outperform with a US$7.50 per share target price, a 148% return for investors at the time of the report.According to Mikitchook, Quartermain discussed the new mineral resource estimate (MRE) update on Richmond Hill at the conference. The project is adjacent to Coeur Mining Inc.'s (CDE:NYSE) producing Wharf mine and its heap-leachable resource is now 3,650,000 ounces (3.65 Moz) of gold (Au) in the Measured and Indicated (M&I) category and 2.61 Moz Au in the Inferred category. The project has additional millable resources.
At the same cutoff grade as Wharf, Richmond Hill has 2.8 Moz at 0.72 grams per ton (0.72 g/t) of Au, M&I, and 1.7 Moz of 0.61 g/t of Au, Inferred. The 4 Moz Wharf mine generated about US$95 million in free cash flow last year from about 98,000 ounces (98 Koz) of gold.
The resource "will be the platform with on which Dakota Gold will revitalize the Homestake District," Dakota Co-Chair, President, and Chief Executive Officer Robert Quartermain said during a web call with investors and analysts discussing the resource. "With over 48,000 acres of mineral tenures, we're the leading district exploration company. The mineral resource we identified at Richmond Hill, when in production, will fund its further development and expansion as well as the exploration and development of our Maitland gold project and many other mineral opportunities we have now identified in the over 60-million-ounce Homestake District gold camp."
'In the Shadow' of Old Producing Mines
The historic Homestake Mine produced 41 Moz gold and 9 Moz silver over 126 years. The company has 48,000 acres of holdings surrounding the original mine, which was first discovered in 1876 and consolidated by George Hearst.
John Newell of John Newell & Associates wrote, "The area surrounding super giant deposits like Homestake is believed to contain significant additional gold resources, making it prime real estate for exploration."
"The Dakota Gold project is located near the Homestake Mine, which historically produced more than 40 Moz of gold," he wrote. This proximity suggests a high potential for similar deposits. Being in the shadow of many old mines increases the probability of finding significant mineral resources."
The Catalyst: Gold Still Setting Records
According to a report by Anmol Choubey for Reuters on March 24, gold prices dropped Monday as the dollar touched an over two-week high and investors took stock of U.S. President Donald Trump's more cautious stance on tariffs against trading partners.
However, spot gold still settled above the US$3,000 per ounce level at US$3,006.84 Monday afternoon, Choubey wrote.
"We've hit a record after record and now the market is just consolidating these gains and this is enforced by somewhat higher U.S. dollar," Bart Melek, head of commodity strategies at TD Securities, according to the report.
Gold is traditionally seen as a hedge against geopolitical and economic uncertainties. It has hit at least 16 record highs this year and reached an all-time peak of US$3,057.21 last week, Choubey wrote.
Those seeking safe haven in gold are pushing up the prices, Garth Friesen wrote for Forbes on March 15.
"However, several other longer-term factors and trends will help determine whether the rally will be sustained," he noted.
Streetwise Ownership Overview*
Dakota Gold Corp. (DC:NYSEAmerican)
*Share Structureas of 3/28/2025Source: Dakota Gold Corp.On March 11, according to Friesen, DoubleLine Chief Executive Officer Jeffrey Gundlach said, "I think gold will make it to US$4,000. I'm not sure that'll happen this year, but I feel like that's the measured move anticipated by the long consolidation at around US$1,800 on gold."
Ownership and Share Structure
About 15% of the company's shares are with management and insiders, including Co-chairman, Director, President and Chief Executive Officer Robert Quartermain, who holds the most shares at 7.1%, while COO Jerry Aberle holds 4.1%, the company said.
About 26% of its shares are with institutional investors. Top institutional holders include Van Eck Associates with 3.2%, Blackrock Institutional Trust Co. with 3.6%, The Vanguard Group Inc. with about 3.2%, and Fidelity Management and Research Co. LLC with 2.3%.
About 16.5% is with strategic investors, including Orion Mine Finance, which owns about 9.0%, and Barrick Gold Corp., which owns about 2.0%. The rest is retail.
Dakota Gold has a market cap of US$292.6 million, with 107.97 million shares outstanding. It trades in a 52-week range of US$3.50 and US$1.84.
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Important Disclosures:
Dakota Gold Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Dakota Gold Corp.Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.For additional disclosures, please click here.