Dundee Corporation Announces Sale of New Found Gold Corp. Units for Up to C$159.1 Million

Core Viewpoint - Dundee Corporation has entered into an agreement to sell 24,480,000 units at a price of C$4.00 per unit, resulting in gross proceeds of C$97,920,000, which will enhance its liquidity and support general corporate purposes [1][6][10]. Group 1: Sale Transaction Details - The sale will consist of one common share of New Found Gold Corp. and one-half of a common share purchase warrant per unit, with the warrants exercisable at C$5.00 for 12 months [1][4]. - The transaction is scheduled to close on or about December 16, 2025 [3]. - The sale of unit shares will occur through block trades in Canada and on a private placement basis in the U.S. [2]. Group 2: Financial Implications - If all warrants are exercised, total gross proceeds could reach C$159,120,000 [1]. - Post-transaction, Dundee will hold 12,242,569 common shares and 7,655,829 warrants of New Found, representing approximately 3.6% undiluted and 5.7% partially diluted interest [6][8]. - Prior to the transaction, Dundee held 36,722,569 shares, indicating a significant reduction in ownership percentage [8]. Group 3: Strategic Rationale - The transaction allows Dundee to redeploy capital into opportunities that enhance cash generation while retaining a meaningful stake in New Found's future growth [4]. - The proceeds will be used to improve liquidity and support corporate objectives [6][10]. Group 4: Regulatory and Reporting - Dundee will file an early warning report due to the decrease in its holdings below 10%, which will exempt it from certain reporting requirements unless holdings increase again [11]. - The securities sold will not be registered under U.S. securities laws, limiting their sale within the U.S. [5].