Business
Bulgaria and DPM Agree-in-Principle to New Royalty and Public Private Partnership for New Chelopech Smelter
TORONTO, March 10 /CNW/ - Dundee Precious Metals Inc. (TSX: DPM; DPM.WT) (the "Company" or "DPM")...
About this update from Dpm Metals Inc.
[{"type":"text","content":"\n\n\n\nTORONTO, March 10 /CNW/ - Dundee Precious Metals Inc. (TSX: DPM; DPM.WT)\n(the "Company" or "DPM") announced that Officials from the Bulgarian\nGovernment and the Company have entered into an agreement-in-principle\nconcerning the proposed expansion of the Chelopech copper-gold mine.\n\n\nUnder the terms of this agreement-in-principle, DPM will pay a higher\nroyalty for all the metals that can be mined economically at the Chelopech\nsite. This new royalty will be calculated in accordance with the existing\nOrdinance on Royalty Computation on a sliding scale. It will be between 2% and\n8% at a profitability ratio of between 10% and 60%. This new royalty will\nreplace the one entered into in good faith by DPM in 2004 and that was set to\nexpire in 2010. As well, DPM will provide a full environmental reclamation\nbond covering the Chelopech mine, which will be one of the first of its kind\nin Europe.\n\n\nIn addition to a higher royalty, Bulgaria and DPM have\nagreed-in-principle to enter into a public private partnership (PPP) for the\nstate-of-the-art metals processing facility to be built at the Chelopech mine\nsite. Under the terms of this PPP, Bulgaria's Silver Fund will own 25% of this\nnew facility. The new smelter will cost approximately US$155 million to build\nand take close to 18 months to complete, from receipt of all permits. Once it\nis complete, the new smelter is expected to add - directly and indirectly -\n150 new jobs to the Bulgarian economy. The operation of this new smelter will\nbe in compliance with all local and international requirements. DPM's proven\ntrack record of management and financial success will mean Bulgaria's\npensioners will receive a direct financial benefit from this new smelter for\nmany years to come.\n\n\n"On our part, we will do everything necessary, while abiding by all\nenvironmental standards and procedures, to make sure that the state provides\nfull support to DPM for the implementation of this investment and for the\nfunctioning of the mining operation," said Bulgarian Prime Minister Sergey\nStanishev during a special press-conference given in Sofia today. "Both the\nstate and the investor will do everything possible to have the plant\ncommissioned in the fastest possible manner, ideally within 18 months."\n\n\n"We have stated all ...