On August 30, 2023, Dundee Corporation announced that its wholly-owned subsidiary, Dundee Resources Limited, has elected to convert its equity interest in the Borborema gold project joint venture between Aura Minerals Inc. and Dundee Resources into a net smelter royalty.
Under the terms of the net smelter royalty, Dundee Resources will earn a net smelter return royalty equivalent to 1.5% on the sale of any product containing economically recoverable minerals obtained from ore mined and removed from the Borborema project. The 1.5% net smelter return applies to the first one and a half million ounces of gold sold, then is reduced to 1% on the next 500,000 ounces of gold. Once the production threshold of two million ounces of gold from the Borborema gold project has been reached, the net smelter royalty will terminate in accordance with its terms.
Cassels acted for Dundee Corporation.