Dundee Precious Metals Completes Sale of MineRP
Dundee Precious Metals Completes Sale of MineRP
Toronto, Ontario, May 3, 2021 – Dundee Precious Metals Inc. (TSX: DPM) (“DPM” of “the Company”)
today announced that DPM and the other shareholders (collectively, “the Vendors”) have closed the sale
of 100% of MineRP Holdings Inc. (“MineRP”) to Epiroc Canada MineRP Holding Inc., a subsidiary of Epiroc
Rock Drills AB (“Epiroc”).
Consideration for DPM’s 73.7% equity interest in MineRP and th e repayment of DPM shareholder loans
consists of (i) approximately $41 million in cash on closing subject to a working capital adjustment following
closing (the “Cash Proceeds”) and (ii) potential additional proceeds in the form of an earn-out conditional
on the achievement of certain revenue targets by MineRP in 2021 and 2022 . The Cash Proceeds are net
of certain amounts to be placed in escrow on closing to secure against any post closing adjustments related
to working capital and any potential breaches in representations and warranties for a period of 60 days and
2 years, respectively.
“We are pleased to conclude the sale of MineRP following our investment in this technology in support of
our innovation strategy . The proceeds from this transaction, together with potential additional proceeds
under the earn -out, will further strengthen our balance sheet and support our mining business going
forward,” said David Rae, President and Chief Executive Officer of Dundee Precious Metals . “We would
like to wish MineRP and Epiroc well in taking the business to the next level.”
About Dundee Precious Metals
Dundee Precious Metals Inc. is a Canadian -based international gold mining company with operations and
projects located in Bulgaria, Namibia and Serbia. The Company’s purpose is to unlock resources and
generate value to thrive and growth together. This overall purpose is supported by a foundation of core
values, which guides how the Company conducts its business and informs a set of complementary strategic
pillars and objectives related to ESG, innovation, optimizing our existing portfolio, and growth. The
Company’s resources are allocated in -line with its strategy to ensure that DPM delivers value for all of its
stakeholders. DPM’s shares are traded on the Toronto Stock Exchange (symbol: DPM).
For further information please contact:
David Rae
President and Chief Executive Officer
Tel: (416) 365-5092
Jennifer Cameron
Director, Investor Relations
Tel: (416) 219-6177
2
Cautionary Note Regarding Forward Looking Statements
This news release contains “forward looking statements” or “forward looking information” (collectively,
“Forward Looking Statements”) that involve a number of risks and uncertainties. Forward Looking
Statements are statements that are not historical facts and are generally, but not always, identified by the
use of forward looking terminology such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “outlook”, “intends”, “anticipates” , “believes”, or variations of such words and
phrases or that state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken,
occur or be achieved, or the negative of any of these terms or similar expressions. Forward loo king
statements in this news release include, without limitation, statements with respect to the potential
payments and upside from the Earnout; expected benefits to the Company and MineRP from the
Transaction; the Company’s expected use of proceeds; and t he impact on its balance sheet. Forward
Looking Statements are based on certain key assumptions and the opinions and estimates as of the date
such statements are made, and they involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company to be materially different
from any other future results, performance or achievements expressed or implied by the Forward Looking
Statements. In addition to factors already discussed in th is news release, such factors include, among
others, there being no assurance that the Transaction will close, uncertainties with respect to obtaining
required South African regulatory approvals, discretion of the Company with respect to the use of proceeds
from the sale, uncertainties with respect to realizing the targeted Earnouts and receiving funds from the
noted holdbacks, uncertainties with respect to realizing the benefits of the Transaction, as well as those
risk factors discussed or referred to in any other documents (including without limitation the Company’s
most recent Annual Information Form) filed from time to time with the securities regulatory authorities in all
provinces and territories of Canada and available on SEDAR at www.sedar.com . The reader has been
cautioned that the foregoing list is not exhaustive of all factors which may have been used. Although the
Company has attempted to identify important factors that could cause results to differ materially from those
described in Forward Looking Statements, there may be other factors that cause actions, events or results
not to be anticipated, estimated or intended. There can be no assurance that Forward Looking Statements
will prove to be accurate, as actual results and future events co uld differ materially from those anticipated
in such statements. The Company’s Forward Looking Statements reflect current expectations regarding
future events and speak only as of the date hereof. Unless required by securities laws, the Company
undertakes no obligation to update Forward Looking Statements if circumstances or management’s
estimates or opinions should change. Accordingly, readers are cautioned not to place undue reliance on
Forward Looking Statements.