Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

March 15, 2010 08:54 ET

Dundee Precious Metals Inc. Completes C$66 Million Offering

TORONTO, ONTARIO--(Marketwire - March 15, 2010) -


Dundee Precious Metals Inc. (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) ("DPM" or the "Company") is pleased to announce that it has completed its previously announced bought deal equity financing (the "Offering") for gross proceeds to the Company of C$66,000,000. A syndicate of underwriters led by GMP Securities L.P. and including Cormark Securities Inc., Dundee Securities Corporation, BMO Nesbitt Burns Inc. and Union Securities Ltd., purchased an aggregate of 20,000,000 common shares (the "Common Shares") at a price of C$3.30 per Common Share.

The Company intends to use the net proceeds of the Offering for ongoing operating and working capital requirements, capital expenditures (including the payment of cash consideration and capital expenditures to sustain operations on the Tsumeb smelter, project capital for the Chelopech mine expansion and the deposit of a portion of the financial guarantee for environmental and rehabilitation costs for the Chelopech mine and facilities) and general corporate purposes.

Dundee Corporation, the largest shareholder of DPM, acquired an aggregate of 8,881,200 Common Shares in the Offering at a price of C$3.30 per share, increasing its holding from 19,442,555 common shares of DPM (or 19.93% of the outstanding DPM Common Shares on a non-diluted basis) to 28,323,755 common shares (or 24.10% on a non-diluted basis). Assuming the exercise of warrants of DPM currently held by Dundee Corporation, Dundee Corporation would hold 26.55% of the outstanding Common Shares of DPM, without giving effect to the exercise or conversion of any other DPM convertible securities.

Certain statements contained in this news release constitute forward-looking statements. Such forward-looking statements involve a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company's plans to differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statements were made, and readers are advised to consider such forward-looking statements in light of the risks set forth in the Company's disclosure documents, available at www.sedar.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy any securities in the United States. The securities have not been registered under the U.S. Securities Act of 1933 any may not be offered or sold in the United States absent registration or an exemption from the registration requirements of the U.S. Securities Act of 1933.

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