Sinomine Resource Group’s subsidiary now owns the Tsumeb Smelter after renegotiating from US$49 million to US$15.5 million debt-free.
Dundee Precious Metals announced on Friday that the sale initiated in March 2024 had been closed.
According to Dundee Precious Metals, the purchase price was less than a US$5 million holdback to be held in escrow for six months to secure indemnity obligations under the share purchase agreement.
Dundee Precious Metals will transfer all assets and liabilities associated with the Tsumeb smelter to Sinomine debt-free and cash-free, subject to normal working capital adjustments.
Dundee has also made limited representations and warranties and provided certain indemnities to Sinomine customary with transactions of this nature, subject to a liability cap equal to 50% of the purchase price.
The company CEO, David Rae, said the Tsumeb divestiture is another step in a continued track record of creating shareholder value.
Rae thanked the government of Namibia, Sinomine, and former employees and stakeholders for its safe transition and continued success.
