TORONTO, July 11, 2016 /CNW/ - Dundee Precious
Metals Inc. (TSX: DPM) ("DPM" or the "Company") is pleased to
announce that it has closed its previously announced bought deal
financing with a syndicate of underwriters led by RBC Capital
Markets, and including CIBC Capital Markets, Dundee Securities
Ltd., GMP Securities L.P., Paradigm Capital Inc., Scotia Capital
Inc., and BMO Capital Markets (collectively, the "Underwriters"),
pursuant to which the Company issued 18,216,000 common shares of
the Company (each, a "Share") at a price of C$3.00 per Share, for aggregate gross proceeds of
C$54,648,000 (the "Offering"). The
financing included the initial agreement to acquire 15,840,000
Shares and exercise in full by the Underwriters of the
over-allotment option for an additional 2,376,000 Shares.
Concurrent with the Offering, the Company has also closed its
previously announced non-brokered private placement (the
"Non-Brokered Private Placement") of 840,000 Shares at a price of
C$3.00 per Share, for additional
gross proceeds of C$2,520,000.
The Non-Brokered Private Placement was sold to a wholly-owned
subsidiary of Dundee Corporation.
The Company plans to use the net proceeds from the Offering and
the Non-Brokered Private Placement to reduce drawdowns under its
revolver credit facility, support advancing its growth initiatives
and for general corporate purposes.
FORWARD-LOOKING STATEMENTS
This news release may contain certain information that
constitutes forward-looking statements. Forward-looking statements
are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate" and other similar
words, or statements that certain events or conditions "may" or
"will" occur. Forward-looking statements are based on the opinions
and estimates of management at the date the statements are made,
and are subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ
materially from those projected in the forward-looking statements.
These factors include the inherent risks involved in the
exploration and development of mineral properties, the
uncertainties involved in interpreting drilling results and other
geological data, fluctuating metal prices and other factors
described above and in the Company's most recent annual information
form under the heading "Risk Factors" which has been filed
electronically by means of the Canadian Securities Administrators'
website located at www.sedar.com. The Company disclaims any
obligation to update or revise any forward-looking statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking statements.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy nor shall there be any sale of
the securities in any state in which such offer, solicitation or
sale would be unlawful. The securities have not been
registered under the U.S. Securities Act of 1933, as amended, and
may not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements.
SOURCE Dundee Precious Metals Inc.