DeHeng Assisted Sinomine Resource Group in Acquiring the Tsumeb Smelter in Namibia

2024-03-08

On March 7, 2024, Sinomine (Hong Kong) Rare Metals Resources Co., Ltd., a wholly-owned subsidiary of Sinomine Resource Group Co., Ltd., reached an agreement in Windhoek, the capital of Namibia, to acquire the Tsumeb Smelter from Dundee Precious Metals Inc. (“DPM”). The acquisition involves the purchase of 98% of the issued shares in Dundee Precious Metals Tsumeb Holding (Pty) Ltd. (“DPMTH”) for a cash consideration of USD 49 million. DPMTH’s principal asset is the Tsumeb Smelter located in Namibia. 

▲Mr. Wang Pingwei (left), Chairman and President of Sinomine Resource, and Mr. David Rae (right), CEO of DPM, at the signing ceremony.  

As the lead legal counsel for the acquirer, DeHeng Law Offices collaborated with Namibian and Canadian legal teams to provide whole-process legal services for the project. These services included transaction structuring, legal due diligence on the target, negotiation over transaction documents, and liaising with local government authorities. DeHeng lawyers ensured the project’s professionalism, efficiency, and confidentiality, delivering comprehensive and high-quality legal support to the client.

The DeHeng team was led by partner Chen Wei, head of DeHeng’s Cross-Border Investment & Finance Group, with primary support from partner She Wei of its Beijing Office, as well as support from lawyers Qiao Fei, Feng Yiwen, Liu Xiaotong, and Huang Tianhuan.

▲Group photo of participants at the signing ceremony.