Dundee Precious Metals Inc. entered a US$50 million prepaid forward gold transaction for the sale of about 18,000 ounces of gold in 2019 and 28,000 ounces of gold in 2020.
The company will receive an average price of US$1,367 per ounce, with monthly deliveries starting in May 2019.
"This transaction locks in an attractive gold price on a portion of our future production and further enhances our financial strength and flexibility to advance our growth initiatives, including the construction of the low cost Krumovgrad gold mine located in southern Bulgaria," the company's President and CEO Rick Howes said in a statement.
Dundee Precious Metals also amended the US$80 million tranche C component of its US$275 million revolving credit facility to align with the construction and commissioning schedule for Krumovgrad.
Construction is expected to start in October, in line with operations starting in the fourth quarter of 2018. The company was granted a final construction permit for the Krumovgrad gold project in August.