DPM Completes Sale of Timok and Potoj Cuka Gold Projects in Serbia
July 30 2010 - 5:07PM
Marketwired
Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A)
("DPM" or "the Company") is pleased to announce it has completed
the sale of its Timok and Potoj Cuka gold projects located in
Serbia (the "Projects"). Pursuant to a business combination
agreement dated April 28, 2010 among DPM, PJV Resources Inc.
("PJV") and Rodeo Capital Corp. (now Avala Resources Ltd.
("Avala")), PJV has acquired DPM's interest in the Projects through
the acquisition of DPM's Serbian subsidiary, Dundee Plemeniti
Metali d.o.o., in exchange for consideration consisting of PJV
units and US$1.6 million in cash, and a business combination has
been effected by way of a three-cornered amalgamation, whereby PJV
has amalgamated with a wholly-owned subsidiary of Avala. Upon the
completion of the amalgamation, all of the securities of PJV
(including the securities issued to DPM as part of the sale of its
Projects, and the common shares and warrants of PJV issuable upon
the exchange of the subscription receipts issued in the PJV
financing transaction that closed on April 28, 2010), were
exchanged for (or became exercisable for) securities of Avala on a
one-for-one basis.
As a result of the business combination and exchange of the PJV
subscription receipts, DPM holds 73,437,357 common shares and
36,718,679 warrants of Avala, a company listed on the TSX Venture
Exchange. DPM was also issued special rights (the "Special Rights")
to acquire up to an aggregate of 50,000,000 additional Avala common
shares for no additional consideration, of which 25,000,000 are
issuable upon a positive decision to proceed to a feasibility study
on the Projects and an additional 25,000,000 are issuable upon a
positive decision to bring all or part of the Projects into
production. Upon completion of the business combination (and
assuming no exercise of convertible securities) DPM holds
approximately 50.3% of the outstanding Avala common shares or
approximately 60.3% assuming the exercise of DPM's warrants (but
assuming that no other convertible securities have been exercised
and without factoring in the 50,000,000 Special Rights issued to
DPM). Additional information with respect to the forgoing
transaction, including the terms of securities acquired by DPM, is
available in the Filing Statement of Avala filed on its SEDAR
Profile at www.sedar.com.
Dundee Precious Metals Inc. is a Canadian based, international
mining company engaged in the acquisition, exploration,
development, mining and processing 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.
DPM recently acquired Namibia Custom Smelters (Pty) Limited, owner
of the Tsumeb smelter in Namibia, which processes, in addition to
Chelopech concentrate, third party concentrates. DPM is also
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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