DUNDEE PRECIOUS METALS TAKES UP BULGARIAN GOLD MINES
The Canadian Dundee Precious Metals company made changes in the boards of directors of Balkan Mineral Mining, Navan Chelopech, and Bimak. Dundee acquired the three companies from the bankrupt British Navan Mining company last September and paid USD26.5MN for them. The purchase price of the assets amounts to USD10MN. Another USD4MN should be paid in 2005, and the remaining USD12.5MN is due as soon as the Government allows the exploiting of the Ada Tepe gold deposit. All members of the boards were dismissed during the general meetings of the three companies, held on October 31. The vacant positions were occupied by Jonathan Goodman, Laurence Marsland, Bruce Burton, and Jeremy Basil Cooper. Jonathan Goodman is Dundee Precious Metals President and Chief Executive Officer.The new owner of the assets of Navan Mining is a subsidiary of Dundee Precious Metals Inc, a closed-type investment company. In turn, the investment company is part of Dundee Bancorp Group of Companies, which exploits several mines, including International Corona Corporation and Kinross Gold Corporation.The British Navan Mining was forced to sell its Bulgarian companies when it was declared insolvent last year for debts amounting to USD24MN. Its main creditor is Deutsche Bank, which helped to find a buyer of the property of its debtor.Dundee Precious Metals profited by the opportunity to acquire Navan Mining's Bulgarian companies in Chelopech in September 2003.Balkan Mineral Mining - Chelopech, is prospecting the gold deposits in Ada Tepe near Krumovgrad, as well as in the municipalities of Chernoochene, Kurdzhali, Zlatograd, Kirkovo, Dzhebel, and Momchilgrad. The company is going to invest USD1MN in the research of these gold mines over the next three years. However, this investment will bring a significant profit to the Canadians. The deposit near Krumovgrad alone is expected to produce about 150,000 ozs of gold per year in the course of five or six years. Navan Chelopech is occupied with the extraction of copper pyrites and gold ores. Bimak is the third company already controlled by Dundee Precious Metals. Based in the village of Chelopech, it processes the extracted concoctions and metals.