The Namibia Competition Commission has approved the sale of Dundee Precious Metals’ interest in the Tsumeb smelter to the Chinese company Sinomine Resource Group.
Dundee Precious Metals signed an agreement to sell its shares in the Dundee Precious Metals Tsumeb Holding to Sinomine Resources Group for US$49 million in March 2024.
Dundee Precious Metals Tsumeb Holding operates the Tsumeb smelter.
In a statement on Friday, Dundee Precious Metals said the sale is on track to close as planned in the third quarter of 2024.
The company, however, said the closure is subject to the completion of the documentation regarding the revised purchase price and proposed tolling arrangement.
One of the issues that will be considered involves the price negotiations from US$49 million to US$20 million.
In July 2024, all required Chinese regulatory approvals were received, with approval under the Namibia Competition Act still required. Following the smelter’s tolling agent electing to end its tolling agreement with Tsumeb, DPM is currently in discussions with Sinomine Resource Group Co Ltd (“Sinomine”) regarding amendments to the share purchase agreement (“SPA”), including an expected reduction of the cash consideration from $49.0 million to $20 million.
The parties are also discussing a proposed arrangement whereby Dundee Precious Metals would agree to step into the role of tolling agent for the smelter for four months following the sale’s closing, which is expected in the third quarter of 2024.
