Dundee Precious Metals Inc. (“DPM”) is pleased to announce that it has entered into an agreement to transfer an 8 per cent ownership interest in Dundee Precious Metals Tsumeb (Pty) Ltd. (“DPMT” or the Tsumeb Smelter) to Greyhorse Mining Ltd. (“GHM”).
DPM will also be transferring an additional two per cent ownership interest in the Tsumeb Smelter to a DPMT Employee Trust to be established for the benefit of the smelter employees. “This transaction is another demonstration of our support for the government and its New Equitable Economic Empowerment Framework (“NEEEF’),” said Rick Howes, President and CEO of Dundee Precious Metals Inc. “As a leader in corporate social responsibility, we believe this transaction will help achieve the objectives of economic empowerment across a broad group of Namibians including our own employees.”
“This transaction creates hope for previously disadvantaged Namibians to believe that share in wealth will let the business grow. I am thrilled by the fact that our
employees are new shareholders and they will be working for their company which will result in increased productivity,” said Zebra Kasete, DPMT’s Vice President and Managing Director.
GHM intends to execute a broad-based empowerment strategy based on enterprise, entrepreneurial development, skills development, mentorship and knowledge
transfer. “We are extremely excited about our new relationship with DPM and DPMT.,” said Saul Kahuika GHM’s Board Chairperson. “This transaction is another example of how DPM is delivering on its commitments to stakeholders in Namibia and is proactively seeking to achieve the objectives set out in the NEEEF”.
The principal terms and conditions of the GHM acquisition are:
• GHM will acquire an 8% share for approximately USD20.2 million.
• The acquisition will be financed by DPM.
• GHM will receive an annual dividend of USD 500,000 for the first 5 years subject to DPMT having sufficient available distributable funds and GHM achieving approved performance metrics.
• GHM will nominate one of the five members of DPMT’s board. The board will also include three DPMT employees and a fifth independent director to provide additional Namibian perspective and diversity.
The transaction has been substantially agreed to between the parties and is expected to be completed by mid-2018. The structure and details of the DPMT
Employee Trust are currently underway and additional information will be available when the final details are reached.
Since the acquisition of the Tsumeb Smelter in 2010, DPM has made significant investments to modernize the Tsumeb smelter and transform it into a sustainable
operation. Through the Dundee Community Trust, DPMT also provides support to local SME’s and entrepreneurs and funds sport, art, health and education projects in the community.
About Dundee Precious Metals Inc.:
Dundee Precious Metals Inc. is an international mining company which also owns and manages the Tsumeb Smelter in Namibia. The smelter was constructed in the early 1960’s and is one of the few in the world equipped to treat large unblended volumes of complex concentrate. Blister copper is the product of the smelter and sulphuric acid the by-product.