Dundee Precious Metals Completes the Sale of Its Back River Project in Nunavut
June 09 2009 - 4:06PM
Marketwired
Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A)
("DPM" or the "Company") announced today that it has completed its
previously announced sale of its Back River exploration project in
Nunavut to Sabina Silver Corporation (TSX VENTURE: SBB) ("Sabina").
Pursuant to the transaction, the Company received in exchange for
the Back River project:
- Cdn$7 million in cash;
- 17,000,000 Sabina common shares;
- 5,000,000 Series A Special Warrants; and
- 5,000,000 Series B Special Warrants
Each of the Special Warrants is exercisable for one common share
and one-half of one common share purchase warrant ("Warrant") of
Sabina. The Series A Special Warrants will be automatically
exercised upon a decision to proceed to a feasibility study or
proceed to production on the Back River project. The Series B
Special Warrants will be automatically exercised upon a positive
production decision with respect to the project. Each whole
Warrant, if issued, will be exercisable for five years from the
date of closing, at the discretion of DPM, for one Sabina common
share at a price of Cdn$1.07 per Sabina common share.
As a result of the transaction, without factoring the exercise
of the Special Warrants, DPM holds 18.8% of Sabina's outstanding
common shares.
FORWARD-LOOKING STATEMENTS
This news release may contain certain information that
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan", "expect",
"project", "intend", "believe", "anticipate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices and other factors
described above and in the Company's most recent annual information
form under the heading "Risk Factors" which has been filed
electronically by means of the Canadian Securities Administrators'
website located at www.sedar.com. The Company disclaims any
obligation to update or revise any forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
Dundee Precious Metals Inc. is a Canadian based, international
mining company engaged in the acquisition, exploration, development
and mining of precious metals. DPM owns the Chelopech Mine, a
producing gold/copper mine, and the Krumovgrad Gold Project, a
mining development project, both located in Bulgaria, as well as a
95% interest in the Kapan Mine in Armenia. In addition, it is
engaged in mineral exploration activities in Serbia.
Contacts: Dundee Precious Metals Inc. Jonathan Goodman President
& Chief Executive Officer (416) 365-2408
jgoodman@dundeeprecious.com Dundee Precious Metals Inc. Lori Beak
Vice President, Investor Relations and Corporate Secretary (416)
365-5165 lbeak@dundeeprecious.com
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