|By Marketwired .||
|June 26, 2014 05:25 PM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 06/26/14 -- Dundee Precious Metals Inc. (TSX: DPM) (TSX: DPM.WT.A) ("DPM" or "the Company") has added $125 million of credit capacity to its existing long-term committed revolving credit facility (the "Revolving Facility"), increasing the total size of the Revolving Facility to $275 million. This increase was supported by all of the Company's existing lenders, being BNP Paribas, Canadian Imperial Bank of Commerce, European Bank for Reconstruction and Development, Raiffeisen Bank International AG Group, Royal Bank of Canada, and Unicredit Bank AG, as well as Export Development Canada, a new lender to the Company.
"This expanded credit facility provides us with access to a cost effective and flexible source of funding that maintains our financial strength and supports the continued development of our business," said Rick Howes, DPM's President and CEO. "We are pleased with the support we received from our banking partners and are well positioned to fund our anticipated near-term discretionary growth projects."
The expanded Revolving Facility is comprised of two evergreen tranches of $150 million (previously $125 million) and $45 million (previously $25 million) that mature in February 2017 and 2019, respectively, and a new tranche of $80 million that matures in June 2019, with quarterly reductions of $4 million beginning in the third year. The Revolving Facility is supported by guarantees from, and by pledges of the Company's investments in its wholly-owned operating subsidiaries. Interest is based on LIBOR plus a spread, which varies between 2.75% and 5.50%, depending upon the tranche and Company's debt leverage ratio (funded net debt to EBITDA), as defined in the Revolving Facility agreement.
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 Company's principal operating assets include the Chelopech operation, which produces a copper concentrate containing gold and silver, located east of Sofia, Bulgaria; the Kapan operation, which produces a copper concentrate and a zinc concentrate, both containing gold and silver, 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 12.1% interest in Sabina Gold & Silver Corp.
Cautionary Note Regarding Forward Looking Statements
This press 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 future price of gold, copper, zinc and silver, the estimation of mineral reserves and resources, the realization of such 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, reclamation expenses, the potential or anticipated outcome of title disputes or claims 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 that 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 Company 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 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, uncertainties inherent with conducting business in foreign jurisdictions where corruption, civil unrest, political instability and uncertainties with the rule of law may impact the Company's activities; fluctuations in metal prices; unanticipated title disputes; claims or litigation; limitation on insurance coverage; as well as those risk factors discussed or referred to in the Company's MD&A under the heading "Risks and Uncertainties" and under the heading "Cautionary Note Regarding Forward Looking Statements" which include further details on material assumptions used to develop such forward looking statements and material risk factors that could cause actual results to differ materially from forward looking statements, and other documents (including without limitation the Company's 2013 AIF) 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. 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 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.