Dynacor Gold Mines has signed a letter of intent with KN Equipments Inc and Fonds Souverain d’Investissements Stratégiques of Sénégal (FONSIS) that could see the building of an upgradable ore-processing plant, in Senegal.
The ore purchasing and processing company, which currently services artisanal and small-scale miners (ASM) in Peru (facility pictured), said the joint venture agreement sets in motion a strategy to expand its business globally.
The initial plan is for a 100-150 t/d facility, costing some $10 million, with the design to double capacity to 300 t/d.
The agreement, which follows a series of visits to meet with the Senegalese government, would see Dynacor operate the plant and own the majority of the company with 51% ownership, while KN Equipments and FONSIS would own the balance at 25% and 24%, respectively.
This is subject to a seven month due diligence period, due to complete before the end of 2019. Dynacor noted.
“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 company said. As the new company would be the sole professional ore-processing facility in Senegal, Dynacor said it sees strong demand for its “reputable and knowledgeable service”.
Jean Martineau, President and CEO of Dynacor, said: “The new company would bring a logical combination of Dynacor’s ore processing leadership and 20-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 recognised 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, said: “Fonsis plays an important role as it backs the strategy of the Ministry of Mines and Geology. This project will help formalise gold mining activities for small and medium size legal mines.”
Robert Nieminen, President of KN Equipments, added: “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.”
