Dundee Precious Metals Inc.

Dundee Precious Metals Inc.

June 06, 2007 08:42 ET

DPM Signs Key Contracts for Chelopech Concentrate


TORONTO, ONTARIO--(Marketwire - June 6, 2007) - Dundee Precious Metals Inc. (TSX:DPM) ("DPM" or "the Company") announced today that its wholly owned subsidiary Chelopech Mining EAD ("Chelopech") has recently entered into concentrate sales contracts of between 40,000 tonnes to 75,000 tonnes for 2008, and between 30,000 tonnes to 80,000 tonnes for 2009. At full production, Chelopech currently produces between 70,000 and 80,000 tonnes of concentrate per year. Chelopech is continuing to consider additional contracts to match its full production for 2008. These concentrate sales contracts address the short-term commercial and economic issues confronting Chelopech, and ensure continuity of mine operations through 2009, and possibly longer.

DPM continues to experience unnecessary political delays by the Bulgarian Minister of Environment and Waters. These delays prevent DPM from securing the permits required to expand the Chelopech mine and put in place an autoclave and metals production facility. The Company remains committed to securing the permits as soon as possible and proceed with the development in Bulgaria as originally planned. However, with these new concentrate sales contracts, DPM is now in a position to consider alternative locations for the planned investment. DPM will immediately commence a new study that will look at other jurisdictions in which to build the autoclave and metals production facility. Since the plant design is complete, the study will likely be finished by November of this year. DPM will then be able to confirm the preferred location for the production facility, and begin securing the necessary permitting and related approvals to start construction, if required.

Dundee Precious Metals Inc. is a Canadian based, international 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 the Krumovgrad Gold Project, a mining development project, both located in Bulgaria, and is engaged in mineral exploration activities in Serbia. In addition, the Company owns the Back River gold exploration project in Nunavut, Canada and an 80% interest in the Kapan Mine in Armenia. DPM also holds a significant and strategic portfolio of investments in the precious metals and mineral related sector.


This news release may contain certain information that constitutes forward-looking statements. Forward-looking statements are frequently characterized by words such as "plan," "expect," "project," "intend," "believe," "anticipate" and other similar words, or statements that certain events or conditions "may" or "will" occur. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drilling results and other geological data, fluctuating metal prices and other factors described above and in the Company's most recent annual information form under the heading "Risk Factors" which has been filed electronically by means of the Canadian Securities Administrators' website located at www.sedar.com. The Company disclaims any obligation to update or revise any forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

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