DPM Enters Into Option Agreement With Queensland Minerals Ltd. Covering Balance of Serbian Properties
October 12 2010 - 9:48AM
Marketwired
Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A)
("DPM" or "the Company") is pleased to announce it has entered into
an option agreement with Queensland Minerals Ltd. ("QML"), an
exploration company listed on the TSX Venture Exchange ("TSXV"), in
respect of DPM's Serbian properties, namely its Surdulica
molybdenum, Tulare copper/gold and the Karmanica gold projects
directly held by its Serbian subsidiary, Dundee Moly Company d.o.o.
("Molyco"), (the "Agreement"). Pursuant to the Agreement, QML is
entitled, subject to the terms and conditions of the Agreement, to
exercise its option to acquire 100% of DPM's interest in all of the
issued and outstanding shares of Molyco upon: (i) QML having raised
in one or more financings aggregate gross proceeds of $10 million
("Combined Financings"); (ii) QML having expended aggregate
exploration expenditures of $3 million on the Serbian properties;
and (iii) QML obtaining all requisite regulatory, shareholder,
stock exchange or governmental authorizations and consents. The
option is valid for one year from the date of the Agreement,
October 4, 2010.
"This arrangement allows for the steady advancement of these
exciting exploration properties by Queensland's experienced team
while giving DPM and its shareholders the opportunity to continue
to participate in their future success," said Jonathan Goodman,
President and CEO of DPM.
Upon exercise of the option under the Agreement, DPM will
receive a number of units ("Vendor Units") in the capital of QML,
such that, upon completion, DPM will hold 47.5% of the issued and
outstanding capital of QML, post-closing on a non-diluted basis
(subject to adjustments under certain circumstances). Each Vendor
Unit will be comprised of one QML common share and that number of
warrants (but not less than half a warrant per Vendor Unit) as is
equal to the number of warrants forming part of units sold in
various tranches of the Combined Financings on a pro rata basis of
each of the tranches of the Combined Financings. Each whole warrant
will be exercisable for one common share of QML for a period of not
less than two years and at an exercise price not greater than $0.42
per warrant.
For further information, please refer to the news release issued
by QML on October 12, 2010.
Dundee Precious Metals Inc. is a Canadian based, international
mining company engaged in the acquisition, exploration,
development, mining and processing of precious metals properties.
The Company's operating interests include its 100% ownership of
Chelopech Mining EAD, its principal asset being the Chelopech mine,
a gold, copper, silver concentrates producer located east of Sofia,
Bulgaria, a 100% ownership of Namibia Custom Smelters (Pty) Ltd., a
concentrate processing facility located in Tsumeb, Namibia, and a
95% interest in Vatrin Investment Limited ("Vatrin"), a private
entity which holds 100% of Deno Gold Mining Company CJSC, its
principal asset being the Kapan mine, a gold, copper, zinc, silver
concentrates producer located south east of the capital city of
Yerevan in southern Armenia. DPM's interests also include a 100%
interest in the Krumovgrad development stage gold property located
in south eastern Bulgaria, near the town of Krumovgrad, through its
wholly-owned subsidiary, Balkan Mineral and Mining EAD, and certain
exploration and exploitation properties 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. Stephanie E. Anderson
Executive Vice President & Chief Financial Officer (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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