DPM Completes Settlement Agreement of NCS Obligations With LDC
TORONTO, ONTARIO -- (Marketwire) -- 05/27/10 -- Dundee Precious Metals Inc. (TSX: DPM)(TSX: DPM.WT)(TSX: DPM.WT.A) ('DPM' or 'the Company') has now completed the previously announced settlement with Louis Dreyfus Commodities Metals Suisse S.A. ('LDC') of approximately US$11.4 million of financial obligations owed by Namibia Custom Smelters (Pty) Limited ('NCS') to LDC, through the payment of US$2 million to be made in cash and the issuance of 2,903,525 common shares of DPM, a value of US$9.4 million based on a deemed price of Cdn$3.50 per share. As of the date hereof, NCS has approximately US$4.7 million in term debt owing to LDC.
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 for LDC. 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