Canadian gold miner Dundee Precious Metals (DPM) has completed the sale of the Tsumeb smelter, in Namibia, to a subsidiary of Sinomine Resources for $20 million on a debt-free and cash-free basis.
The transaction includes a $5 million holdback in escrow for six months to secure the company’s indemnity obligations under the share purchase agreement.
“In line with our strategy, the Tsumeb divestiture is another step in our continued track record of creating shareholder value,” said DPM chief executive David Rae.
“I would like to extend our thanks to the Government of Namibia, Sinomine and our former employees and stakeholders for its safe transition and continued success.”
DPM acquired the smelter in 2010 to secure a processing outlet for the complex concentrate produced by the company’s Chelopech mine in Bulgaria.
With developments in the global smelting market and changes in the quality of the Chelopech concentrate, DPM can place its Chelopech concentrate at several other third-party facilities, providing secure and reliable processing alternatives at favourable terms.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
