Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

July 31, 2009 08:08 ET

DPM Announces Subscription for Shares of Weatherly International

TORONTO, ONTARIO--(Marketwire - July 31, 2009) - Dundee Precious Metals Inc. ("DPM" or the "Company") (TSX:DPM)(TSX:DPM.WT)(TSX:DPM.WT.A) announced that it has reached an agreement with Weatherly International plc, an AIM-listed company, ("WTI") to: (a) subscribe for 40.5 million common shares of WTI for US$2.0 million, and (b) if required by WTI within the subsequent 12 month period, subscribe for up to an additional US$5.0 million worth of WTI common shares based on the then prevailing market price but in no event less, save in certain circumstances, than GBP0.03 per share.

The agreement is subject to final documentation as well as certain conditions, including completion of a contract to extend the Chelopech/Namibia Custom Smelters (Pty) Limited ("NCS") concentrate purchase arrangement from 2014 to and including the year 2020 and to ship up to 140,000 tonnes of concentrate per year. By agreement, the funds from the initial subscription will be advanced by WTI to its subsidiary company, NCS, to cover the costs of certain capital improvements being made to its Tsumeb copper smelter and for working capital purposes.

Upon completion of the initial subscription, DPM will hold 9.1% of the issued and outstanding shares of WTI.

Dundee Precious Metals Inc. is a Canadian based, international mining company engaged in the acquisition, exploration, development and mining of precious metals. DPM owns the Chelopech Mine, a producing gold/copper mine, and the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, as well as a 95% interest in the Kapan Mine in Armenia. In addition, it is engaged in mineral exploration activities in Serbia.

Contact Information

  • Dundee Precious Metals Inc.
    Jonathan Goodman
    President and Chief Executive Officer
    (416) 365-2408
    Dundee Precious Metals Inc.
    Lori Beak
    Vice President, Investor Relations and Corporate Secretary
    (416) 365-5165