Mining investment firm Dundee (TSX: DC.A) is taking a larger-than-usual role in a project through an $85-million (US$60 million) earn-in on Westhaven Gold’s (TSXV: WHN; US-OTC: WTHVF) Shovelnose in British Columbia.
Dundee can earn 60% of Shovelnose and three nearby properties by funding work over seven years, Dundee president and CEO Jonathan Goodman told The Northern Miner’s Western Editor, Henry Lazenby, this month at the Rule Symposium on Resource Investing in Boca Raton, Fla. Dundee, which started infill drilling and expects a prefeasibility study in about a year, wants to erase its shares’ discount to the company’s underlying assets.
“The market’s not paying us for what we’re doing,” Goodman said. “We have a real opportunity to not only get into some great projects and not only eliminate the discount, but also drive a much higher valuation moving forward.”
Shovelnose, 270 km northeast of Vancouver, gives Dundee a project it can steer from drilling and studies towards a possible mine, rather than leaving the firm’s value tied mainly to minority holdings. The next year may show whether Goodman can repeat the transition he led at DPM Metals (TSX: DPM), formerly Dundee Precious Metals, when its move from fund to miner changed how investors valued the company.
Watch the full interview below:
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