Dundee Precious Metals Inc. is discussing amendments to the Tsumeb smelter share purchase agreement with Sinomine Resource Group Co. Ltd., including an expected reduction of the cash consideration from US$49 million to US$20 million.
In addition, under the SPA, DPM is entitled to be paid all cash collected from IXM S.A. concerning the outstanding metal recoverable at Tsumeb, estimated to be US$14.1 million as of June 30, 2024.
However, both IXM and the company have agreed to extend this period to August 9, 2024, in the interim, with a final settlement expected on August 29, 2024.
Sinomine Resource Group Co. agreed to buy Dundee Precious Metals 98% interest in the Tsumeb smelter, including all associated assets and liabilities, on March 7, 2024.
Dundee Precious Metals Tsumeb Holding operates the Tsumeb smelter.
The parties are also discussing a proposed arrangement whereby Dundee Precious Metals Inc. would agree to step into the role of tolling agent for Tsumeb for four months following the sale’s closing, which is expected in the third quarter of 2024.
In July 2024, all required Chinese regulatory approvals were received, with approval under the Namibia Competition Act still needed.
