11:24 AM EDT, 07/15/2020 (MT Newswires) -- Dynacor Gold Mines (DNG.TO) on Wednesday said it is expanding its merchant ore-processing business to Senegal as it readies to construct a pilot milling plant in the West African country.

The company said it completed due diligence that supports construction of the gold mill, forming a subsidiary in which it will hold a majority stake while KN Equipments and FONSIS will have stakes of 25% and 24% respectively.

The pilot plant will initially process ores from three artisanal and small-scale miners (ASMs).

"Our new company brings to Senegal over 20 years of experience in purchasing and processing ore from the ASM industry. The group of three is a low-risk logical partnership bringing together Dynacor's ore processing leadership, KN Equipment's working history and connections in Senegal; a long-standing history of manufacturing milling processing equipment; and the financial strength and support of the Senegalese sovereign fund FONSIS," chief executive Jean Martineau said in a release.

Dynacor shares were last seen up C$0.04 to C$1.96 on the Toronto Stock Exchange.

Price: 1.95, Change: +0.03, Percent Change: +1.56