The mine, brought into production last summer, is operating with a capacity of 2,000 tons per day. Doubling that rate would place the mine among the top gold producers in Canada. Anticipated output this year is expected to total 63,600 oz gold.
The possible expansion project follows a re-evaluation of the mine’s reserves, results of which have not been made public. The property reportedly hosts a large amount of tonnage of marginal grade material.
Controlling shareholder of Dumagami, which has 9.4 million shares outstanding, is Agnico-Eagle Mines, with a 42% interest.
Invesfor says it recently increased its interest in Dumagami from 5% to 5.5%. Invesfor has expressed an interest in having an outside director named to the company’s board.
Invesfor suggests that in the event of a merger between Dumagami and Agnico-Eagle, each share of the former could not be exchanged for less than two of the latter. Agnico-Eagle shares were recently trading on the TSE for just under $12, and Dumagami shares for about $12.50.
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