Dunav Resources and Dundee Precious Metals Complete Transaction
September 02 2011 - 8:41AM
Marketwired
Dunav Resources Ltd. (TSX VENTURE: DNV) ("Dunav") and Dundee
Precious Metals Inc. (TSX: DPM) ("DPM") are pleased to announce the
completion of the acquisition by Dunav of DPM's 100% interest in
the Tulare copper and gold project, the Surdulica molybdenum
project, and other early stage projects located in Serbia
(hereinafter referred to as the "Serbian Projects"). As previously
announced Dunav, having met the minimum equity financing of $10
million ($16,725,968 was raised) and the revised minimum
expenditures of $1 million on the Serbian Projects, notified DPM of
its decision to exercise the option to acquire the Serbian
Projects.
As a consideration for the acquisition, Dunav issued to DPM
47,257,922 common shares and warrants to purchase 36,790,009 common
shares at a price of $0.42 each for a period of 24 months from
issuance, subject to acceleration under certain circumstances. In
accordance with the policies of the TSX Venture Exchange, the
securities issued to DPM are subject to escrow requirements for a
Tier 2 issuer. All securities issued to DPM are subject to a hold
period under applicable securities laws until January 2, 2012.
Following this transaction, DPM holds approximately 47.5% of the
issued and outstanding capital of Dunav on a non-diluted basis.
The companies also entered into ancillary agreements, including:
a standstill agreement relating to certain conduct of DPM,
dependent upon its ownership position in Dunav, relating to
take-over bids; and a qualification rights agreement 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, 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.
During the option period, Dunav has spent approximately $1.6
million on the Serbian Projects. On April 28, 2011, Dunav released
results of its initial exploration program on the Tulare
copper-gold project. Dunav expects to announce an update on its
exploration program shortly.
About Dunav Resources
Dunav Resources is a mineral exploration company focused on the
acquisition, exploration and development of mineral properties in
Serbia. Additional information about the transaction with DPM and
the Serbian Projects is available in Dunav's information circular
dated March 25, 2011 and technical reports for the Tulare and
Surdulica projects filed on SEDAR (www.sedar.com) and on Dunav's
website (www.dunavresources.com).
About Dundee Precious Metals
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.
DPM'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.
This press release contains forward-looking information.
Although Dunav or DPM, as the case may be, believes in light of the
experience of its officers and directors, current conditions and
expected future developments and other factors that have been
considered appropriate that the expectations reflected in this
forward-looking information are reasonable, undue reliance should
not be placed on them because Dunav or DPM, as the case may be, can
give no assurance that they will prove to be correct.
Forward-looking information is subject to known and unknown risks
and uncertainties, and depends on assumptions and other factors,
all of which may cause actual results or events to differ
materially from those anticipated in the forward-looking
information. The forward-looking statements contained in this press
release are made as of the date hereof and Dunav and DPM undertake
no obligations to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Dunav Resources Ltd. James Crombie President and Chief
Executive Officer 450-677-3868 450-677-2601 (FAX)
info@dunavresources.com Dundee Precious Metals Inc. Jonathan
Goodman President & Chief Executive Officer (416) 365-2408
jgoodman@dundeeprecious.com
Dundee Precious Metals (TSX:DPM)
Historical Stock Chart
From Jul 2024 to Jul 2024
Dundee Precious Metals (TSX:DPM)
Historical Stock Chart
From Jul 2023 to Jul 2024