OREANDA-NEWS. Dundee Precious Metals Inc. (TSX:DPM) announced that it has entered into a definitive agreement with respect to a C$43.7 million strategic equity investment in DPM by the European Bank for Reconstruction and Development (“EBRD”).

The investment is to be effected by way of a private placement of 17,843,120 common shares of the Company to be issued to the EBRD at a price of C$2.45 per share. As a result of this transaction, the EBRD will hold approximately 9.99% 43of the Company’s common shares (on a non-diluted basis). Proceeds will be used for the construction of the Krumovgrad project in Bulgaria and will serve to further strengthen the Company’s financial position and flexibility during the construction phase of this project.

As part of EBRD’s investment, DPM will undertake to extend its compliance with EBRD’s environmental, social, economic inclusion and equal opportunity standards to all operations. EBRD has also been granted certain rights, including a right to maintain its pro rata equity interest.

The transaction is subject to normal and customary conditions precedent for a transaction of this nature. Unless otherwise agreed by the Company and the EBRD, the transaction is scheduled to close by January 23,2017, subject to regulatory approvals, including the approval of the Toronto Stock Exchange.

About Dundee Precious Metals

Dundee Precious Metals Inc. is a Canadian based, international gold mining company engaged in the acquisition of mineral properties, exploration, development, mining and processing of precious metals.