Dundee Precious Metals Inc. (DPM) has successfully concluded the sale of its Tsumeb smelter to a subsidiary of Sinomine Resource Group Co. Ltd. (Sinomine).
The transaction was finalized on a debt-free and cash-free basis, with a purchase price of N$281.63 million (US$15.9 million).
As part of the agreement, N$88.75 million (US$5 million) will be held in escrow for six months to safeguard Dundee Precious Metals’ indemnity obligations.
“In line with our strategy, the Tsumeb divestiture marks another step in our ongoing efforts to create shareholder value. I’d like to extend our gratitude to the government of Namibia, Sinomine, and our former employees and stakeholders for ensuring a safe transition and continued success,” said David Rae, President and CEO of DPM.
After accounting for the escrow holdback, the total cash consideration received at closing amounted to N$192.88 million (US$10.9 million). The final cash consideration is subject to potential adjustments following a standard post-closing review.
Earlier this month, Dundee Precious Metals announced that it was in negotiations with Chinese mining giant Sinomine to reduce the sale price of the Tsumeb smelter to N$364 million (US$20 million).
The initial agreement, signed in March 2024, valued the 98% stake in the Tsumeb smelter at N$891 million. However, subsequent discussions between the two parties have led to a proposed reduction in the purchase price to N$364 million.
According to Dundee’s second-quarter results, the decrease was attributed to several factors, including the complex financial arrangements involving the previous tolling agent, IXM S.A., and ongoing negotiations regarding the transfer of the tolling agreement to Dundee.
Sinomine Resource Group is a Chinese-based global mining group with a comprehensive resource industrial chain.
