Dundee Precious Metals Completes Investment Protection Agreement for the Loma Larga Project in Ecuador

TORONTO, Aug. 18, 2023 (GLOBE NEWSWIRE) -- Dundee Precious Metals Inc. (TSX: DPM) (“DPM” or “the Company”) is pleased to announce it has entered into an investment protection agreement (“IPA” or “the agreement”) with the Government of Ecuador for the Loma Larga project (“Loma Larga” or “the Project”). Under the terms of the IPA, the Government of Ecuador has granted DPM tax stability and certain tax incentives, as well as legal protections including stability of the regulatory framework and resolution of disputes through international arbitration.

“The successful completion of the IPA is a significant milestone and positive step forward for the project. This agreement provides further legal protections and tax stability for DPM and our investors,” said David Rae, President and Chief Executive Officer of Dundee Precious Metals. “The IPA represents our dedication to working collaboratively with stakeholders, including the Government of Ecuador. We will continue to take a disciplined approach to future investment and advancement of the project based on the receipt of other key milestones and overall operating environment in country.”

Key incentives and protections for DPM under the IPA include:

• A 5% discount on the income tax rate, fixed at 20%
• Tax stability on VAT
• Exemption on import duties for key machinery for plant and mine facilities
• Protections related to the prohibition of all forms of confiscation, non-discriminatory treatment and equal playing field, legal and tax stability
• International arbitration based in New York, should there be any disputes in relation to the Project
  

The terms of the IPA stipulate that, in order to develop the Loma Larga project, DPM will have to invest greater than US$400 million during the construction and production phases of the project. In-line with the Company’s approach to disciplined project development, DPM intends to meet certain additional milestones for Loma Larga, including the resolution of the constitutional court case and receipt of the environmental licence, prior to committing significant capital to the project.

About Dundee Precious Metals Inc.

Dundee Precious Metals Inc. is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Ecuador and Serbia. The Company’s purpose is to unlock resources and generate value to thrive and grow together. This overall purpose is supported by a foundation of core values, which guides how the Company conducts its business and informs a set of complementary strategic pillars and objectives related to ESG, innovation, optimizing our existing portfolio, and growth. The Company’s resources are allocated in-line with its strategy to ensure that DPM delivers value for all of its stakeholders.