Dundee Precious Metals Completes Investment Protection Agreement for the Loma Larga Project in Ecuador
August 18 2023 - 1:15PM
Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or
“the Company”) is pleased to announce it has entered into an
investment protection agreement (“IPA” or “the agreement”) with the
Government of Ecuador for the Loma Larga project (“Loma Larga” or
“the Project”). Under the terms of the IPA, the Government of
Ecuador has granted DPM tax stability and certain tax incentives,
as well as legal protections including stability of the regulatory
framework and resolution of disputes through international
arbitration.
“The successful completion of the IPA is a
significant milestone and positive step forward for the project.
This agreement provides further legal protections and tax stability
for DPM and our investors,” said David Rae, President and Chief
Executive Officer of Dundee Precious Metals. “The IPA represents
our dedication to working collaboratively with stakeholders,
including the Government of Ecuador. We will continue to take a
disciplined approach to future investment and advancement of the
project based on the receipt of other key milestones and overall
operating environment in country.”
Key incentives and protections for DPM under the
IPA include:
- A 5% discount on
the income tax rate, fixed at 20%
- Tax stability on
VAT
- Exemption on import
duties for key machinery for plant and mine facilities
- Protections related
to the prohibition of all forms of confiscation, non-discriminatory
treatment and equal playing field, legal and tax stability
- International
arbitration based in New York, should there be any disputes in
relation to the Project
The terms of the IPA stipulate that, in order to
develop the Loma Larga project, DPM will have to invest greater
than US$400 million during the construction and production phases
of the project. In-line with the Company’s approach to disciplined
project development, DPM intends to meet certain additional
milestones for Loma Larga, including the resolution of the
constitutional court case and receipt of the environmental licence,
prior to committing significant capital to the project.
About Dundee Precious Metals Inc.
Dundee Precious Metals Inc. is a Canadian-based
international gold mining company with operations and projects
located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s
purpose is to unlock resources and generate value to thrive and
grow together. This overall purpose is supported by a foundation of
core values, which guides how the Company conducts its business and
informs a set of complementary strategic pillars and objectives
related to ESG, innovation, optimizing our existing portfolio, and
growth. The Company’s resources are allocated in-line with its
strategy to ensure that DPM delivers value for all of its
stakeholders.
For further information please contact:
David
RaePresident and Chief Executive OfficerTel: (416)
365-5092drae@dundeeprecious.com |
Jennifer
CameronDirector, Investor RelationsTel: (416)
219-6177jcameron@dundeeprecious.com |
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Cautionary Note Regarding
Forward-Looking Statements
Forward Looking Statements are statements that
are not historical facts and are generally, but not always,
identified by the use of forward looking terminology such as
“plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “guidance”, “outlook”, “intends”,
“anticipates”, “believes”, or variations of such words and phrases
or that state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The
Forward Looking Statements in this news release include, without
limitation, statements with respect to potential benefits of the
IPA; DPM’s future approach to investments in Loma Larga and DPM’s
objectives with respect to meeting certain milestones. Forward
Looking Statements are based on certain key assumptions and the
opinions and estimates of management and its advisers, as of the
date such statements are made, and they involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any other future results, performance or
achievements expressed or implied by the Forward Looking
Statements. Such factors include, among others, the lack of
certainty with respect to foreign legal systems, which may not be
immune from the influence of political pressure, NGO activism,
corruption or other factors that are inconsistent with the rule of
law; risks inherent to conducting business in a foreign
jurisdiction, where political instability is greater than in Canada
and those risk factors discussed or referred to in any other
documents (including without limitation the Company’s most recent
Annual Information Form) filed by the Company from time to time
with the securities regulatory authorities in all provinces and
territories of Canada and available on SEDAR+ at www.sedarplus.com.
The reader has been cautioned that the foregoing list is not
exhaustive of all factors which may have been used. Although the
Company has attempted to identify important factors that could
cause actual actions, events or results to differ materially from
those described in Forward Looking Statements, there may be other
factors that cause actions, events or results not to be
anticipated, estimated or intended. There can be no assurance that
Forward Looking Statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. The Company’s Forward Looking
Statements reflect current expectations regarding future events and
speak only as of the date hereof. Unless required by securities
laws, the Company undertakes no obligation to update Forward
Looking Statements if circumstances or management’s estimates or
opinions should change. Accordingly, readers are cautioned not to
place undue reliance on Forward Looking Statements.
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