Due diligence audit – Bulgaria and Namibia

Due diligence audit – Bulgaria and Namibia

Based in Canada, Dundee Precious Metals Inc. is an international gold mining company involved in the exploration, mining and processing of precious metals. They needed to transfer existing debt from their Chelopech mining operation in Bulgaria to corporate level – and also gain a revolving credit facility for acquisitions, capital expenditures and working capital.

A due diligence audit of the Chelopech expansion project was necessary to secure financial backing for these transactions from UniCredit Bank Austria and the European Bank for Reconstruction and Development. It was also necessary to determine the risk and liability that DPM’s other operations presented to lenders if they were to use the credit facility.

We carried out the review of the sites as agreed with UniCredit and EBRD, focusing on identifying major environmental, social and health and safety issues, and benchmarking the facilities against good international industry practice. We identified gaps in practices compared to in-county compliance, and reported the steps DPM were taking to address the issues. We also carried out an additional audit and assessment of technical/capital feasibility at the associated Tsumeb Smelter in Namibia where a smelter upgrade and modernisation project was underway.