TORONTO, ONTARIO--(Marketwired - Oct. 9, 2013) - Dundee Precious Metals Inc. (News - Market indicators) (TSX:DPM.WT.A) ("DPM" or the "Company") announces that it has been issued an additional 5,000,000 common shares ("Shares") and 2,500,000 share purchase warrants ("Warrants") of Sabina Gold & Silver Corp. ("Sabina") for no additional consideration, upon the exercise of 5,000,000 series A special warrants.
The series A special warrants held by DPM were automatically exercised upon the decision by Sabina to proceed with a feasibility study on all or part of the Back River project, which decision was made by the directors of Sabina on October 7, 2013. Each Warrant is exercisable, at the discretion of DPM, into one Sabina Share at $1.07 until June 9, 2014.
"We are encouraged by Sabina's decision to proceed to feasibility on Back River and we look forward to the further advancement of this exciting project," said Rick Howes, President and CEO.
As a result of the above exercise, DPM now holds 23,539,713 Shares and 2,500,000 Warrants of Sabina, representing a 12.1% interest, on an undiluted basis, and 13.3%, assuming the exercise of the Warrants.
DPM continues to hold an additional 5,000,000 series B special warrants of Sabina that will be automatically exercised, for no additional consideration, upon a decision by Sabina to proceed to production on the Back River project. Each series B special warrant consists of one Share and one half of one share purchase warrant ("Series B Warrant"). Each whole Series B Warrant, if issued, will be exercisable until June 9, 2014, at the discretion of DPM, into one Sabina Share at $1.07.
The above noted securities are held for investment purposes. These investments will be reviewed on a continuing basis and such holdings may be increased or decreased in the future.
DPM 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 12.1% interest in Sabina.
