Namibia Approves Sale of Dundee Precious Metals’ Tsumeb Smelter to Sinomine Resource Group
The Namibia Competition Commission has approved the sale of Dundee Precious Metals’ interest in the Tsumeb smelter to China’s Sinomine Resource Group.
Dundee Precious Metals (DPM) signed an agreement in March 2024 to sell its shares in Dundee Precious Metals Tsumeb Holding to Sinomine Resources Group for $49 million. The Tsumeb smelter is operated by Dundee Precious Metals Tsumeb Holding.
In a statement released on Friday, DPM confirmed that the sale is on track to close in the third quarter of 2024. However, the closure is contingent upon finalizing documentation regarding the revised purchase price and a proposed tolling arrangement.
Negotiations have led to a potential reduction in the sale price from $49 million to $20 million. In July 2024, all required Chinese regulatory approvals were obtained, with the Namibia Competition Commission’s approval being the final regulatory hurdle.
Following the termination of the smelter’s existing tolling agreement, DPM is in discussions with Sinomine to amend the share purchase agreement.
This includes the expected price reduction and a proposed arrangement where Dundee Precious Metals would serve as the tolling agent for the smelter for four months after the sale’s closure, which is anticipated to occur in the third quarter of 2024.
