Dundee Precious Metals (DPM) has announced that it expects the sale of its Tsumeb Smelter to a subsidiary of the Chinese company, Sinomine Resource Group Co., for N$920 million (US$49 million) to close in the third quarter of 2024.
In March 2024, DPM announced that it had entered into a definitive share purchase agreement with a subsidiary of Sinomine Resource Group Co. Ltd. for the sale of its interest in the Tsumeb smelter in Namibia.
Under the terms of the definitive share purchase agreement (SPA), DPM, through the sale of the shares of DPMTH, will transfer all assets and liabilities associated with the Tsumeb smelter to Sinomine on a debt-free and cash-free basis for a consideration of US$49 million in cash, subject to normal working capital adjustments.
Additionally, pursuant to the SPA, DPM is entitled to receive all cash collected from IXM S.A. with respect to a positive balance in metals exposure outstanding at Tsumeb, currently estimated to be approximately US$17.2 million, which will constitute an increase in the purchase price.
The transaction is subject to regulatory approval by the Namibian Competition Commission and Chinese authorities for overseas investments.
During the second quarter of 2024, the Tsumeb smelter processed approximately 52.9 thousand tonnes of complex concentrate.
