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DPM acquires INV Metals

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Global Mining Review,

Dundee Precious Metals Inc. (DPM) has entered into a definitive agreement with INV Metals Inc., whereby DPM will acquire all of the issued and outstanding shares of INV Metals that it does not currently own, pursuant to a court-approved plan of arrangement.

DPM currently owns 35.3 million common shares of INV Metals, or approximately 23.5% of outstanding INV Metals common shares.

Highlights of the transaction:

  • Under the terms of the transaction, each of the issued and outstanding common shares of INV Metals that DPM does not currently own will be exchanged for 0.0910 of a DPM common share.
  • The transaction has strong shareholder support, with management and directors of INV Metals and IAMGOLD Corp. entering into voting support agreements representing, in aggregate, approximately 47% of the outstanding common shares of INV Metals.
  • The exchange ratio implies consideration of CAN$0.80 per INV Metals common share based on the preceding 5-day volume-weighted average price (VWAP) of DPM on the Toronto Stock Exchange (TSX) for the period ending 28 May 2021. This represents a 63% premium to the closing price of INV Metals common shares on the TSX on 28 May 2021.
  • The implied equity value of the transaction on a 100% and fully-diluted basis is equal to approximately CAN$132 million and CAN$104 million for the portion not owned by DPM.
  • Upon completion of the transaction, existing DPM and INV Metals shareholders will own approximately 94.5% and 5.5% of the pro forma company, respectively.

“This transaction leverages our proven strengths as an environmentally and socially responsible mining company, and we look forward to engaging with all national and local stakeholders,” said David Rae, Dundee Precious Metals’ President and Chief Executive Officer. “Loma Larga adds a high-quality, advanced stage gold project to our portfolio that has the potential to generate meaningful production growth and significant value for our stakeholders.”

“Our approach to advancing Loma Larga will benefit from our firm commitment to the highest standards for engagement with local communities and environmental stewardship, in addition to our development and operating experience to further unlock the significant potential of the project.”

Candace MacGibbon, Chief Executive Officer of INV Metals, said, “We are very pleased to announce this transaction today following many years of hard work and dedication from the INV Metals team. We believe DPM is uniquely positioned to move Loma Larga forward, and as such, this transaction is not only an excellent outcome for our shareholders, but also one with the potential to offer tremendous benefits for both the project’s national and local stakeholders in the coming years.”

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