Dundee Precious Metals Reaches Agreement on Tsumeb Smelter Obligations
January 14 2010 - 11:14AM
Marketwired
Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A)
("DPM" or "the Company") is pleased to announce that it has agreed
with Louis Dreyfus Commodities Metals Suisse SA ("LDC"), the
smelter tolling agent, in principle, subject to contract and
completion of DPM's acquisition of the Tsumeb smelter and related
assets (the "Transaction"), to settle approximately US$11.4 million
of metals exposure and debt to LDC, estimated at US$17 million,
through the payment of US$2 million in cash and US$9.4 million in
common shares of DPM, based on a deemed price of Cdn.$3.50 per
share. The smelter will then have approximately US$5.6 million in
debt remaining to LDC. LDC will continue to have exclusive rights
to source the balance of the concentrate for the Tsumeb smelter
through to 2020, other than the Chelopech long term supply
contract.
Please refer to the news release issued by DPM earlier today for
further information on the Transaction.
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.
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.
Contacts: Dundee Precious Metals Inc. Jonathan Goodman President
& Chief Executive Officer (416) 365-2408
jgoodman@dundeeprecious.com Dundee Precious Metals Inc. Stephanie
E. Anderson Executive Vice President & CFO (416) 365-2852
sanderson@dundeeprecious.com Dundee Precious Metals Inc. Lori Beak
Vice President, Investor Relations & Corporate Secretary (416)
365-5165 lbeak@dundeeprecious.com
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