Polymetal International to Acquire Dundee Precious Metals’ Kapan Mine for $25 Million, Armenia
[Click image to enlarge]
[Click image to enlarge]
Dundee Precious Metals Inc. has entered into a definitive agreement with Polymetal International Plc for the sale of its interest in the Kapan mine located in Armenia through the disposition of all of the issued and outstanding shares of Dundee Precious Metals Kapan CJSC (DPMK).
“We are pleased to announce the sale of Kapan to Polymetal. The proceeds from the sale will serve to strengthen our balance sheet and reduce future capital requirements, which can be utilized to support the future growth of our business, and allows us to focus on our remaining core assets. We would also like to thank the community of Kapan and our employees for their support since we acquired the asset in 2006 and will do our utmost to ensure a smooth transition to the new owner,” said Rick Howes, president and CEO of Dundee Precious Metals.
“Polymetal believes that the acquisition of the Kapan mine will result in the development of a profitable regional processing hub with sizable production which will provide a strong operating platform to pursue further opportunities in Armenia,” said Vitaly Nesis, group CEO of Polymetal.
Under the proposed transaction, DPM, or a subsidiary thereof, will receive consideration consisting of (i) US$10 million in cash from the buyer (subject to a working capital adjustment following closing), (ii) US$15 million in Polymetal ordinary shares, and (iii) a 2 percent net smelter royalty on future production from the Kapan property capped at US$25 million. DPM will continue to maintain a presence in Armenia through joint venture arrangements in respect of certain exploration assets in the central part of the country.
About Dundee Precious Metals
Dundee Precious Metals Inc. is a 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 copper concentrate containing gold and silver, located east of Sofia, Bulgaria; the Kapan operation, which produces a copper concentrate and a zinc concentrate, both containing gold and silver, 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 the Krumovgrad project and interests held through its 50.1 percent owned subsidiary, Avala Resources Ltd., and its 12.0 percent interest in Sabina Gold & Silver Corp.
To stop by Dundee Precious Metals’ website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2016 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
