Dundee completes Tsumeb smelter sale
Canada-based gold mining company Dundee Precious Metals (DPM) has closed the sale of the Tsumeb smelter, in Namibia, to a subsidiary of Sinomine Resources Group.
DPM sold the smelter for $20-million, less a $5-million holdback to be held in escrow for a period of six months to secure the company’s indemnity obligations under the share purchase agreement with Sinomine.
The company reported that it was paid a total cash consideration of $15.9-million, as adjusted, less the escrow holdback amount.
Tsumeb is one of the few smelters globally that can treat complex polymetallic concentrates, including those with higher arsenic content. It produces blister copper (98.5% copper), which is refined in Europe and Asia, and sulphuric acid as a by-product.
DPM bought the smelter in 2010 to secure a processing outlet for the concentrate produced by its Chelopech mine, in Bulgaria. However, in March the company announced the sale of the smelter, stating that developments in the global smelting market and changes in the quality of Chelopech concentrate, meant it could place concentrate at several other third-party facilities.
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