Re DATELINE SECURES US$6,843,000 WORKING CAPITAL FACILITY

At DTR’s AGM in December, Chairman Mark Johnson pointed out that due to the Corona virus situation in the USA and international travel restrictions “the company had to shift its strategy from aggressive exploration and development to one of attrition by limiting outgoings until such time as the environment changed.”

It is now apparent that DTR management has used the enforced slowdown to good effect, advancing the implementation of its declared strategy of acquiring, re-activating and further developing gold mines in the USA which had previously been profitably operated.

Just over a week ago the Company announced that it had entered into a binding agreement to acquire 100% ownership of the Colosseum gold mine in San Bernardino County, California.

Today it announced that it has secured a US$6,843,000 working capital facility. Funds from the facility will be used to advance the Company’s Gold Links Project in Colorado into production, enabling DTR to transition into being a gold producer by the end of this year. The foreshadowed 2021 work program entails:

Quarter 2 - Underground and surface drilling to Increase the current resource base and to increase confidence in the inferred resource below the old workings.

Quarter 3 - Underground development to enable the extraction of the indicated and inferred resource.

Quarter 4 - Processing of the extracted resource at the Company’s Lucky Strike Mill which can be operated year-round on a 24/7 basis.

Managing Director Stephen Baghdadi commented: “This funding provides the capital required to assist with increasing the resource at Gold Links and transform the Company into a gold producer, with sales expected to fund increased exploration and development activity both at the Gold Links and at the Colosseum once that transaction is completed.”

The terms of the loan facility appear to be quite favourable. It has a 10-year maturity with the first four years interest only followed by principal and interest for the remainder of the term. The interest rate is 6.00% per annum; and importantly, the loan is denominated in USD as will be virtually all of DTR’s costs and revenues.