Dundee Precious Metals Inc. early this month announced that it has 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 located in Tsumeb including all associated assets and liabilities, through the disposition of all of the issued and outstanding shares it indirectly holds in Dundee Precious Metals Tsumeb Holding for consideration of US$49 million in cash.
Dundee had operated the smelter for 13 years having acquired the smelter in 2010 to secure a processing outlet for the complex concentrate produced by the company’s Chelopech mine in Bulgaria.
The transaction is subject to customary closing conditions, including approval under the Namibia Competition Act and approvals required from Chinese regulatory authorities for overseas investments.
Dundee is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Serbia and Ecuador.
This week, Alina Garises, communications manager at Dundee Precious Metals Tsumeb gave an update on the process so far which will see Sinomine acquire the smelter.
Observer Money (OM): When does Dundee Precious Metals Inc expect the sale of Tsumeb smelter to be completed?
Alina Garises (AG): We currently anticipate the sale to close in the third quarter of 2024, subject to the completion of the Namibia Competition Act process.
OM: What processes still need to be completed?
AG: As earlier stated, this is subject to the completion of the Namibia Competition Act process.
OM: Where will Sinomine Resource Group Co. Ltd import the copper from given the change of ownership?
AG: Sinomine is a leading enterprise specializing in the lithium battery, renewable energy and raw materials industry. The company operates in China, Canada, United Kingdom, Norway, Zambia and Zimbabwe and intends for the smelter to contribute to the development, smelting and downstream processing for their mining operations.
OM: How are you working with Sinomine to ensure a smooth transition to support a successful future for the operation and all of its stakeholders.
AG: We are collaborating closely through planning and open communication to ensure a seamless transition for all stakeholders.
OM: Anything else that you wish to add?
AG: We will continue to communicate with our stakeholders throughout this process and will do our best to answer any questions based on the information available.
