Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

January 10, 2005 13:08 ET

Dundee Precious Settles Remaining Obligations on Purchase of Bulgarian Mining Assets from Navan


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DUNDEE PRECIOUS METALS INC.

TSX SYMBOL: DPM

JANUARY 10, 2005 - 13:08 ET

Dundee Precious Settles Remaining Obligations on
Purchase of Bulgarian Mining Assets from Navan

TORONTO, ONTARIO--(CCNMatthews - Jan. 10, 2005) - Dundee Precious Metals
Inc. (TSX:DPM) ("Dundee Precious", "DPM" or "the Company") is pleased to
announce that it has agreed to settle the remaining obligations to Navan
Mining Plc (in administrative receivership) ("Navan") in connection with
the September 30, 2003 purchase of Navan's Bulgarian mining assets. In
return for the payment of US$10.5 million, Navan will: (1) retire the
US$4 million payable plus accrued interest; (2) cancel the US$12.5
million contingent consideration due upon the conversion of the
Krumovgrad exploration permit to a mining concession and the granting of
all operating permits and environmental approvals necessary for the Ada
Tepe gold project; and (3) cancel the future royalties payable on
certain grassroots Bulgarian exploration properties. Completion of this
transaction is subject to the release of outstanding security attached
to the Bulgarian assets which is expected to occur on or before March
31, 2005.

Dundee Precious Metals Inc. is an operating mining company engaged in
the acquisition, exploration, development and mining of precious metals.
It currently owns the Chelopech Mine, a producing gold/copper mine, and
Ada Tepe, an advanced stage gold exploration property, both located in
Bulgaria. The Company is engaging in mineral exploration activities in
the region and holds a significant portfolio of investments in the
precious metals and mineral related sector.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Dundee Precious Metals Inc.
    Jonathan Goodman
    President & Chief Executive Officer
    Tel: (416) 365-2408
    Email: jgoodman@dundeeprecious.com
    or
    Dundee Precious Metals Inc.
    Gabriela M. Sanchez
    Vice President Investor Relations
    Tel: (416) 365-2549
    Email: gsanchez@dundeeprecious.com
    or
    Dundee Precious Metals Inc.
    Bruce Burton
    Chief Financial Officer
    Tel: (416) 365-5143
    Email: bburton@dundeeprecious.com