One of the four horsemen finds its way to Dundee Precious Metals in Tsumeb
“This transaction creates hope for previously disadvantaged Namibians to believe that to share in wealth will let the business grow. I am thrilled by the fact that our employees are new shareholders and they will be working for their company which will result in increased productivity,” said Zebra Kasete, Dundee Precious Metal’s Namibian Vice President and Managing Director, when the company announced on Thursday a change in shareholding, and a shareholding scheme for employees.
Dundee Precious Metals Tsumeb is the operator of the copper smelter in Tsumeb. The company is owned by Toronto Stock Exchange-listed Dundee Precious Metals Inc.
This week Thursday, the parent announced it has entered into an agreement to transfer 8% of its shares in the Tsumeb smelter to Greyhorse Mining (Pty) Ltd, ostensibly a local black empowerment mining investment vehicle. A further 2% shareholding will be transferred to the Dundee Precious Metals Tsumeb Employee Trust.
“This transaction is another demonstration of our support for the government and its New Equitable Economic Empowerment Framework” said Rick Howes, President and Chief Executive of Dundee Precious Metals Inc after a large Dundee and Greyhorse delegation met with Namibian President, HE Dr Hage Geingob to explain the motivation for the intended change in shareholding.
Chairman of the Greyhorse board, Saul Kahuika, said that this transaction is another example of how Dundee Precious Metals is delivering on its commitments to stakeholders in Namibia and is proactively seeking to achieve the objectives set out in the empowerment framework.
The principal terms and conditions of the Greyhorse acquisition are:
Greyhorse will acquire an 8% share for approximately US$20.2 million.
The acquisition will be financed by Dundee Precious Metals. Greyhorse will receive an annual dividend of US$500,000 for the first five years subject to the smelter having sufficient available distributable funds and Greyhorse achieving agreed performance targets.
Its newfound shareholding entitles Greyhorse to appoint one member to the smelter’s board.
Since the acquisition of the Tsumeb Smelter in 2010, Dundee Precious Metals said it has made significant investments to modernize the smelter and transform it into a sustainable operation. Through the Dundee Community Trust, the company also provides support to local SMEs and entrepreneurs and funds sport, art, health and education projects in the community.
Caption: Representatives of Dundee Precious Metals and Greyhorse Mining (Pty) Ltd met the President on Thursday to bring him up to speed regarding the empowerment deal for shareholding in the copper smelter at Tsumeb. HE Dr Geingob sits in the front, centre left, with the Canadian Dundee’s Chief Executive, Rick Howes, centre right.