TORONTO, ONTARIO--(Marketwired - June 11, 2013) -
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES
Dundee Precious Metals Inc. (DPM.TO)(DPM-WTA.TO) ("DPM" or the "Corporation") is pleased to announce that approximately 12.7 million of its listed warrants (the "Warrants") have been exercised in connection with its previously announced warrant incentive program during the early exercise period (the "Early Exercise Period") between May 10, 2013 and June 10, 2013, representing approximately 62% of the total publicly-traded Warrants outstanding. The early exercises provided total proceeds, net of the incentive offered, of approximately Cdn$36 million and resulted in DPM issuing approximately 12.7 million common shares ("Common Shares"). As a result, the Corporation now has Common Shares outstanding of 138,633,627, on a basic basis, and 146,362,411, on a fully diluted basis.
"We are pleased with the results of the early warrant exercise program," said Rick Howes, President and CEO. "With the funds received from the exercise of the warrants, we currently have approximately $285 million of cash and undrawn committed bank lines which, along with cash flow from operations, positions us well to fund our key development projects."
The remaining 7.7 million Warrants that were not exercised during the Early Exercise Period will continue to be entitled to receive one Common Share upon exercise of each Warrant and payment of the exercise price of Cdn$3.25 prior to 5:00 p.m. (Toronto time) on November 20, 2015.
A copy of the management information circulars relating the warrant transaction that were circulated to shareholders and warrantholders, dated March 26, 2013 and April 9, 2013, respectively, can be found at www.sedar.com.
Dundee Securities Ltd. and GMP Securities L.P. ("GMP") acted as financial advisors to the Corporation with respect to the warrant transaction. GMP also provided a fairness opinion to the board of directors of the Corporation indicating that the exercise price reduction was fair, from a financial point of view, to both warrantholders and shareholders.
The Common Shares issued upon exercise of the Warrants have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption therefrom is available.
Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The Corporation's principal operating assets include the Chelopech operation, which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Kapan operation, which produces gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility located in Namibia. DPM also holds interests in a number of developing gold properties located in Bulgaria, Serbia, and northern Canada, including interests held through its 53.1% owned subsidiary, Avala Resources Ltd., its 45.5% interest in Dunav Resources Ltd. and its 9.9% interest in Sabina Gold & Silver Corp.
FORWARD LOOKING STATEMENTS
This news release contains "forward-looking statements" that involve a number of risks and uncertainties. Forward-looking statements include, but are not limited to, statements with respect to the Warrant Amendment, future growth opportunities, the future price of gold and silver, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production and output, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, currency fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, limitations on insurance coverage and timing and possible outcome of pending litigation. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management 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 Corporation to be materially different from any other future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others: the availability of future growth opportunities, the actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of gold, copper, zinc and silver; possible variations in ore grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, fluctuations in metal prices, as well as those risk factors discussed or referred to in documents filed from time to time with the securities regulatory authorities in all provinces and territories of Canada and available at www.sedar.com. Although the Corporation has attempted to identify important factors that could cause actual actions, events or 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 could differ materially from those anticipated in such statements. Unless required by securities laws, the Corporation 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.
This press release is not an offer of securities for sale in the United States. The securities have not been and will not be registered under the U.S. Securities Act of 1933. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities that may be made in the United States will be made by means of a prospectus that may be obtained from the issuer and that will contain detailed information about the Corporation and management, as well as financial statements.
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President & Chief Executive Officer
Dundee Precious Metals Inc.
Lori Beak, Senior Vice President,
Investor & Regulatory Affairs and Corporate Secretary