05:20 PM EST, 01/30/2025 (MT Newswires) -- Dynacor Group ( DNGDF ) on Thursday it will raise up to $20 million in a best-efforts public share offering.

The company, which operates a merchant gold mill in Peru, said it will sell up to 3.64-million shares priced at $5.50 each in the offer. It also granted Canaccord Genuity, it sole agent, a 15% over-allotment option.

Proceeds will be used mainly for the construction and development of a new ore processing plant in Senegal, secondly for preparatory construction work on additional processing plants in Africa, other opportunities in Latin America, as well as for working capital and for general corporate purposes.

"This financing underscores our confidence in Dynacor's ( DNGDF ) growth prospects as the use of these funds will primarily support our expansion efforts," said chief executive Jean Martineau. "This financing allows us to construct a pilot ore processing plant in Senegal, a first step in our West African expansion plans, and to lay the groundwork for additional plants, reinforcing our commitment to generating shared value for our stakeholders."

The company's shares closed up $0.02 to $6.13 on the Toronto Stock Exchange.