An unknown subsidiary of Sinomine Resource Group Co., Ltd. (SZSE:002738) entered into a definitive share purchase agreement to acquire Tsumeb smelter located in Namibia from Dundee Precious Metals Inc. (TSX:DPM) for $50 million on March 7, 2024. The consideration is payable on debt-free and cash-free basis. The transaction consists the sale of its interest in the Tsumeb smelter located in Namibia, 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 (Pty) Ltd. The cash received by DPM on closing will be less a $5 million holdback to be held in escrow for a period of six months to secure the Company?s indemnity obligations under the share purchase agreement.

Dundee Precious Metals expects to use the proceeds from the transaction to further strengthen its balance sheet and to support its core mining business in line with its disciplined capital allocation framework. 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, and is expected to close in Q3 2024. Cutfield Freeman & Co.

Ltd. acted as financial advisor to Dundee Precious Metals.