Canadian gold mining company Dundee Precious Metals (DPM) has completed the sale of its Tsumeb smelter in Namibia to a subsidiary of China’s Sinomine Resource Group.
The transaction, valued at $20m (C$26.99m) on a debt-free and cash-free basis, includes a $5m holdback in escrow for six months to secure DPM’s indemnity obligations under the share purchase agreement.
The deal between the parties was signed in March 2024. It includes all associated assets and liabilities through the sale of all shares that DPM indirectly holds in Dundee Precious Metals Tsumeb Holding.
The smelter’s divestment will allow DPM to concentrate on its core business areas and growth initiatives.
DPM president and CEO David Rae said: “In line with our strategy, the Tsumeb divestiture is another step in our continued track record of creating shareholder value. I would like to extend our thanks to the Government of Namibia, Sinomine and our former employees and stakeholders for its safe transition and continued success.”
The company acquired the smelter in 2010 to ensure a processing outlet for the complex concentrate produced at its Chelopech mine in Bulgaria.
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By GlobalData
The Tsumeb smelter is equipped to treat complex polymetallic concentrates including those with higher arsenic content.
However, as a result in shifts in the global smelting market and alterations in the quality of the Chelopech concentrate, Dundee has found it feasible to process its concentrate at various other third-party facilities.
These alternatives offer secure and reliable processing options on favourable terms, the company said earlier.
In December 2023, DPM agreed to acquire Canada’s Osino Resources for $214m.
