Dundee Precious Metals Inc. (TSX: DPM) finalized a definitive share purchase agreement (SPA) with Sinomine Resource Group Co. Ltd., selling its stake in the Tsumeb smelter in Namibia, including all assets and liabilities, via the disposal of Dundee Precious Metals Tsumeb Holding (Pty) Ltd. The transaction, valued at $65.6 million (US$49 million) in cash, aligns with DPM's strategy to focus on gold mining assets, simplifying its portfolio. DPM expressed gratitude to Namibia's government, Tsumeb's community, and its employees for their support.

DPM acquired the smelter in 2010 to process Chelopech mine's complex concentrate from Bulgaria. However, evolving global smelting dynamics and concentrate quality changes enabled DPM to explore alternative processing options at favorable terms.

Key transaction terms included transferring all Tsumeb smelter assets and liabilities to Sinomine for $65.6 million (US$49 million) cash, subject to customary adjustments. DPM provided limited representations, warranties, and indemnities, capped at 50% of the purchase price. Additionally, DPM expected about $22.4 million (US$17.2 million) from IXM S.A., increasing the purchase price.

The transaction's closure, expected in Q3 2024, hinged on Namibian Competition Act approval and Chinese regulatory clearances. DPM intended to use proceeds to bolster its balance sheet and support core mining activities. Cutfield Freeman & Co. Ltd. advised DPM financially during the deal.