Published: December 21, 2023 |

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[Click image to enlarge]

Canada-based gold mining company Dundee Precious Metals (DPM) has agreed to acquire gold exploration and development company Osino Resources for $214 million (C$287 million).

The acquisition includes Osino’s advanced-stage, multi-million-ounce Twin Hills open-pit gold project, along with an extensive exploration portfolio in Namibia.

Under the terms of the agreement, DPM will acquire all the issued and outstanding common shares of Osino at $0.58 (C$0.775) in cash and issue 0.0801 shares of DPM per each Osino share.

The total consideration implies a value of $1.16 per (C$1.553) per Osino share and a total equity value of $214 million (C$287 million) on a fully diluted in-the-money basis.

Upon completion of the transaction, DPM will issue 13,766,364 shares to Osino shareholders and existing Osino shareholders will own around 7 percent of the combined company.

“DPM is a highly credible and well-financed builder and operator of gold mines with the technical skills and financial resources to progress the project through construction and into production,” said Osino Resources President and CEO Heye Daun.

“We are very proud to have attracted a company of DPM’s caliber, thereby securing the future development of Twin Hills, which we believe has the potential to become Namibia’s third and largest gold mine. Since 2019, the Osino team has made great strides in discovering and advancing Twin Hills, and de-risking the project from a technical and permitting perspective,” added Daun.

Twin Hills is a structurally controlled gold deposit located within Namibia’s prospective Damara Orogenic Belt, along the strike of the producing, open-pit Navachab and Otjikoto gold mines.

The project contains 11 exclusive prospecting licenses (EPLs) granted by the government of Namibia, held over a combined area of 153,206ha.

Osino’s June 2023 feasibility study (FS) suggests an open-pit project with a 13-year mine life and an average annual production of 175,000 ounces of gold over the first five years.

“Twin Hills represents a unique opportunity to add a high-quality development asset in an excellent mining jurisdiction to our portfolio. The project provides a foundation for our future production profile with production targeted for 2026, as well as significant exploration upside,” said Dundee Precious Metals President and CEO David Rae.

“This transaction also allows us to leverage our strong local relationships in Namibia, which we have built over many years, and continue our focus on growing our portfolio of gold assets,” added Rae.

Source: NS Energy

Dundee Precious Metals (DPM) is a Canadian-based international gold mining company with operations and projects located in Bulgaria, Namibia, Serbia, and Ecuador. DPM’s purpose is to unlock resources and generate value to thrive and grow together. This overall purpose is supported by a foundation of core values, which guides how DPM conducts its business and informs a set of complementary strategic pillars and objectives related to ESG, innovation, optimizing their existing portfolio and growth. The company’s resources are aligned in-line with its strategy to ensure that DPM delivers value for all of its stakeholders.

Osino Resources is a Canadian gold exploration and development company focused on the fast-tracked development of its wholly owned, Twin Hills Gold Project in central Namibia. Since its grassroots discovery in August 2019, Osino has completed more than 225,000 meters of drilling and has completed a suite of specialist technical studies culminating in the recently published Twin Hills FS. The FS describes a technically simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of more than 169koz per annum. Osino has an exploration package of approximately 8,000km located within Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines.

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