Dynacor Gold Mines Inc. (TSX: DNG) (OTC: DNGDF) (Dynacor or the Corporation), a leading ore purchasing and processing corporation servicing artisanal and small-scale miners (ASM) in Peru, announced today that it has signed a Letter of Intent (“LOI”) with “KN Equipments Inc.” and “Fonds Souverain d’Investissements Stratégiques” of Sénégal (“FONSIS”).


Image: Dynacor signs letter of intent to globally expand its ore-purchasing and processing business. Photo: courtesy of Jan W./Pixabay.

The Corporation is setting in motion to strategically expand its business globally by forming a jointly-owned company to operate in Senegal. The new company would start by building an upgradable ore-processing plant in Senegal. The initial plan is for a 100-150 TPD (tonnes per day) facility with the design to double capacity to 300 TPD.

Dynacor is to operate the plant and own the majority of the company with 51% ownership. KN Equipments Inc. and FONSIS will own the balance at 25% and 24% respectively.

Subject to a seven (7) month due diligence period which is to complete before the end of 2019, the terms of the LOI anticipate Dynacor will provide the technical and legal teams. The teams are to conduct a complete accounting of potential production sites, the total number of ASM and all other pertinent data concerning the feasibility of this project. The final decision to move ahead on the project will be on or before December 31, 2019.


In November 2017, the Corporation paid a first visit to meet with the Senegalese government. The encouraging meetings prompted Dynacor to follow up with a second visit in February 2018. A technical team from Dynacor was sent to Senegal to evaluate the gold potential and ASM situation. During the site visit, the collection of many grab samples from several ASM operating in the area was an essential step the technical team completed. The local ASM community was welcoming to the team members and quite eager to start realizing the financial and environmental benefits in utilizing the ‘Dynacor’ value-added ore purchasing and processing advantage. As the new company would be the sole professional ore-processing facility in Senegal, the Corporation sees strong demand for its reputable and knowledgeable service. Independent analysis of the samples from the Bureau Veritas assay lab located in Abidjan, Ivory Coast confirmed the Corporation’s positive results at its Veta Dorada facility in Peru. The promising grades and metallurgical recovery rates, together with the supporting Senegalese government and enthusiasm of the local ASM community, convinced Dynacor to move forward on the LOI and the full due diligence program.


The new company would initially build a 100-150 TPD ore-processing facility, with an expandable design to 300 TPD. The budget to build the 100-150 TPD plant is approximately USD 10 Million. The new company is to invest USD 4M, of which Dynacor’s total share would amount to 51% or USD 2.04M together with KN Equipments and FONSIS investing an additional USD 1.96M. The balance of the USD 10 Million is to be financed by local Senegalese banks.

Jean Martineau, President and CEO of Dynacor, commented, “The new company would bring a logical combination of Dynacor’s ore processing leadership and twenty plus year experience together with KN Equipment’s presence in Senegal, a long-standing history of manufacturing milling processing equipment and the financial strength of the Senegalese sovereign fund FONSIS.”

“As part of Dynacor’s strategic plan to become an internationally recognized ore-processing company servicing the ASM industry worldwide, we believe this new low-risk project affords us the opportunity to significantly enhance Dynacor’s growth and leadership role on a global basis.”

Mamadou Mbaye, Executive Vice President of Fonsis, added, “Fonsis plays an important role as it backs the strategy of the ministry of Mines and Geology. This project will help formalize gold mining activities for small and medium size legal mines.

Robert Nieminen, President of KN Equipments, commented, “We look forward to partnering with Dynacor and FONSIS to expertly enhance the Senegal ASM industry by offering top end service and superior value to Senegalese miners and their communities. As we have more than three years of providing manufacturing and mining maintenance service in Senegal, our company is quite well versed in the country’s ASM space and its demand for the new company and the value it will deliver. The new company, including Dynacor, the world’s undisputed ASM ore-processing leader with a sterling track record, FONSIS, a sovereign fund with financial backing from the Republic of Senegal combined with our sixty years of experience in design and manufacturing of mill processing equipment will enable a smooth, speedy development path to opening the highly anticipated plant.”

Source: Company Press Release