Dundee Precious Metals Raises Public Offering to 80 Mln Canadian Dollars (53.1 Mln Euro) to Back Bulgarian Operations

“Under the revised terms, the syndicate of underwriters co-led by GMP Securities L.P. and Dundee Securities Corp. and including BMO Capital Markets has agreed to sell 35,556,000 units at a price of 2.25 Canadian dollars per unit to raise gross proceeds of 80,001,000 Canadian dollars pursuant to a short form prospectus,” Dundee said in a statement.

The company intends to use the net proceeds for ongoing operating requirements, capital expenditures, including project capital for the Chelopech mine expansion, and general corporate purposes, it added.

Dundee announced the prospectus on Thursday, originally seeking 70 million Canadian dollars in gross proceeds. The offering is expected to close on or about November 20.

The offering is subject to regulatory and Toronto Stock Exchange approval.

Bulgaria's Environment Ministry granted in July approval for a $155-$160 million (121-125 million euro) project for the construction of a gold, silver and copper production plant by Dundee Precious Metals's local unit, Chelopech Mining.

The plant, expected to be completed by the end of 2010, is to be built on an existing production site of Dundee, some 70 kilometres east of the capital Sofia. It is expected to at least double Dundee's annual local output to two million tonnes of ore, the company's senior investment projects manager for Bulgaria.

In Bulgaria Dundee also operates the Krumovgrad development stage gold property through its wholly-owned subsidiary, Balkan Mineral and Mining.

Toronto-based Dundee also has operations in Canada, Serbia and Armenia.