DPM to Acquire Shares and Warrants of Dunav Resources Ltd. on Exercise of Option
August 23 2011 - 5:30PM
Marketwired
In accordance with regulatory requirements, Dundee Precious Metals
Inc. ("DPM" or the "Company") (TSX: DPM)(TSX: DPM.WT)(TSX:
DPM.WT.A) announces that it has received notice from Dunav
Resources Ltd. ("Dunav") of its decision to exercise its option to
acquire from DPM a 100% interest in certain mineral projects in
Serbia (the "Projects"). In exchange for the Projects, DPM will
acquire 47.5% of the issued and outstanding common shares of Dunav
and warrants to purchase an additional 36,790,009 Dunav common
shares (the "Warrants").
On closing, on or about September 1, 2011, DPM will hold
47,257,922 common shares, representing a 47.5% interest in Dunav,
on an undiluted basis, and 36,790,009 Warrants. The Warrants are
exerciseable at a price of $0.42 each for a period of 24 months
from the date of issuance, subject to acceleration under certain
circumstances. Assuming the exercise of the Warrants, DPM would
hold a 61.7% interest in Dunav, on a partially diluted basis. In
accordance with the policies of the TSX Venture Exchange, the
securities issued to DPM are expected to be subject to escrow.
On closing, the parties will also enter into certain other
ancillary agreements, including: a standstill agreement relating to
certain conduct of DPM, dependent upon its ownership position in
Dunav, with respect to take-over bids; and the grant by Dunav to
DPM of qualification rights pursuant to which DPM will be entitled
to request the qualification for distribution by prospectus in all
provinces of Canada (other than Quebec) of DPM's shares of Dunav,
at DPM's expense, and as long as DPM holds more than 20% of the
outstanding shares of Dunav. DPM also has a participation right to
maintain its pro-rata ownership in Dunav.
The above noted securities held by DPM are held for investment
purposes. These investments will be reviewed on a continuing basis
and such holdings may be increased or decreased in the future.
Dundee Precious Metals Inc. is a well-financed, Canadian based,
international gold mining company engaged in the acquisition,
exploration, development, mining and processing of precious metals.
The Company's principal operating assets include the Chelopech
operation, which produces a gold, copper and silver concentrate,
located east of Sofia, Bulgaria; the Kapan operation, which
produces gold, copper, zinc and silver concentrates, located in
southern Armenia; and the Tsumeb smelter, a concentrate processing
facility located in Namibia. DPM also holds interests in a number
of developing gold properties located in Bulgaria, Serbia, and
northern Canada, including interests held through its 51.4% owned
subsidiary, Avala Resources Ltd., and its 11.6% interest in Sabina
Gold & Silver Corp.
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. Lori Beak,
Senior Vice President, Investor & Regulatory Affairs and
Corporate Secretary (416) 365-5165 lbeak@dundeeprecious.com
Dundee Precious Metals (TSX:DPM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Dundee Precious Metals (TSX:DPM)
Historical Stock Chart
From Jul 2023 to Jul 2024