Canada-based Dynacor Group has agreed to an unsecured $20m Gold Purchase and Prepayment Facility with Auramet International for its Svetlana plant located in Ecuador.
The company plans to use the proceeds to support working capital, primarily to build gold inventory for its Svetlana plant, which is in the last refurbishment stage.
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Under the terms of the agreement, Dynacor and its subsidiaries may sell gold produced under various arrangements, including spot, forward, in-process, and prepayment sales, subject to specified conditions.
The facility also permits the company to receive advance payments for defined quantities of London Good Delivery gold bullion, on a revolving basis.
The maximum outstanding amount under the facility is set at $20m.
The term of the facility is two years, with the option for annual extension by mutual agreement.
Dynacor president and CEO Daniel Misiano said: “The Facility provides non-dilutive capital and flexibility for Svetlana, which is the cornerstone of the first phase of our expansion strategy.
“By structuring the financing with physical delivery, with no disruption to our PX Impact responsible gold programme, we preserve the strength of our balance sheet and business model as we transition Svetlana into production.”
Refurbishment at Dynacor’s Svetlana plant was reported as more than 80% complete as of 30 September and within budget.
However, the company cited extended delivery times for the cyclone cluster and extra work required on the elution and refinery circuit, resulting in a minor delay to hot commissioning and ramp-up timelines.
Dynacor reported that the first ore was processed through the crushing circuit in late October this year.
Dry commissioning is underway for crushing, grinding, and leaching, with hot commissioning scheduled for December 2026.
Ramp-up is expected to start in the first quarter of 2027, with the initial gold pour targeted for January.
The plant’s tailings storage facility is operational, and Dynacor is expanding its supplier base, including partnerships with permitted artisanal and small-scale miners near Portovelo and a collaboration with planetGold.
The company’s commercialisation permit from Ecuador’s Ministry of Environment and Energy is anticipated in early November 2026.
Operations at Svetlana are expected to start at 300 tonnes per day and increase to 500 tonnes per day once fully ramped up.
