History
A small uranium explorer turned geothermal player, then gold explorer in South Dakota's Black Hills, it was taken over by JR Resources, raised $50 million and secured Barrick options before deregistering in 2022.
2006-2009: Uranium in Argentina
The company, then called Urex Energy Corp. (formerly Lakefield Ventures), set out as a uranium explorer. On June 8, 2006 it completed the purchase of 99.8% of Argentine company United Energy Metals S.A. (UEM), which held the 170,000-hectare Rio Chubut Property. The price was 8,000,000 shares issued earlier plus $50,000, with the seller keeping a 5% net smelter royalty (a share of mine revenue).
To fund itself, the company raised money in two private placements of units at $0.25 each. A November 2006 placement of 4,000,000 units brought in $1,000,000, and a December 2006 placement of 6,000,000 units brought in $1,500,000, for $2,500,000 in total. Each unit carried a share plus warrants, adding potential dilution.
By 2009 the company changed course. In August it agreed to sell UEM to SGI Partners, LLC for US$500,000, keeping a 2% royalty, to pay down debt and focus on its 100%-owned La Jara Mesa Extension uranium property in New Mexico. That deal failed because SGI did not meet its requirements, and in December 2009 the company signed a letter of intent to sell UEM to UrAmerica Ltd. for the same price. The record does not show how that sale ended.
2010-2012: The geothermal detour
In 2010 the company pivoted to geothermal energy and later became Mustang Geothermal Corp. In March it agreed to buy three Nevada geothermal leases (6,582 acres) from Enco Explorations Inc. for 100 million shares. In August it bought three more Nevada leases (9,800 acres) for 14 million shares valued at $0.15 each, bringing its Nevada holdings to 15,262 acres. In November it agreed to buy 99.9% of Andean Geothermic Energy SAC for 15 million shares and $25,000 cash, giving it geothermal applications in Peru. It later added another Nevada lease and three more Peruvian concessions.
The strategy was paid for almost entirely in shares and never funded in cash. By 2012 the company said it could not afford to explore its four Nevada and seven Peru project areas. The $25,000 for Andean Geothermic had never been paid.
2012-2014: A new start in gold
The turning point came on September 28, 2012. After a 1-for-10 reverse split, the company, renamed Dakota Territory Resource Corp, issued 30 million shares to Richard Bachman and Gerald Aberle for North Homestake Mining Company, owner of the Blind Gold gold property in South Dakota. They received 89.08% of the company, a change of control that heavily diluted existing holders. On October 12, 2012 the board voted to put no more capital into geothermal and to write off those assets.
Growth in the Black Hills of South Dakota was small and steady. In December 2012 the company bought 57 mining claims (about 853 acres) for one million shares valued at $150,000. In January 2013 it raised $250,000 by selling 2,500,000 shares at $0.10 to fourteen investors, including four former senior Homestake Mining executives. In early 2014 it bought about 565 acres from Deadbroke Mining Company, including the historic Gustin, Minerva and Deadbroke mines, plus a smaller 26-acre parcel, funded by a $315,000 placement of 3,150,000 shares at $0.10. Its Homestake District holdings passed 3,057 acres, with no proven or probable reserves. Share count rose from 34.5 million at the end of 2011 to 53.5 million by the end of 2014.
2015-2020: Quiet years, then JR Resources
The record is quiet from 2014 until March 2020, when the company bought 65 mining claims (about 1,152 acres) next to Blind Gold, taking its Homestake District position to about 7,171 acres. It paid with a $300,000 note at 3% due May 2021 and 250,000 extra shares.
In May 2020 it agreed with JR Resources Corp. that JR would lend a further $1,150,000, combining with the earlier $300,000 into a $1,450,000 convertible note. JR also gained the right to buy up to 142,566,667 shares at $0.15. JR bought 69,666,667 shares for $10,450,000 in October 2020, and a further 72,900,000 shares for $10,935,000 on March 12, 2021. That took JR to 142,566,667 shares, about 63.42% of 224,789,323 outstanding, and a change of control. This explains the jump in share count in 2020. Jonathan Awde of JR became CEO, Aberle became chief operating officer, and Bachman resigned as an officer. In November 2020 the company also declared a special dividend of $0.055 per share, paid in January 2021.
2021-2022: Money, Barrick and a merger
In May 2021 the company agreed to merge with JR Resources, with a 1-for-4 reverse split effective May 25, 2021. From June to August it raised gross proceeds of $50,247,724.50 by selling 11,166,161 shares at $4.50, well above its original $25 million target. The filings give slightly different figures for the second tranche, and the difference was not explained.
With the money it signed options with Barrick subsidiaries. In September 2021 it paid $1.3 million and issued 1 million shares for the right to acquire 4,261 acres of surface rights in the Homestake District by September 2024. In October it paid US$100,000 and issued 400,000 shares for an option on the 2,126-acre Richmond Hill Property. The company said its package would total 34,657 mineral acres.
On September 10, 2021 it signed an amended merger agreement under which JR Resources would be renamed Dakota Gold Corp. A merger registration was confidentially submitted to the SEC on October 25, 2021, and a NYSE American listing application was filed. As of December 2021 the merger was not complete, no reserves had been proven, and a drill program of about 103,000 feet was planned for early 2022. On April 6, 2022 the company deregistered its securities, ending its obligation to file reports with the SEC.
Written from the 27 story beats below (2006 to 6 Apr 2022), which come from the company's own announcements and filings.