Canada-based gold mining company Dundee Precious Metals (DPM) has agreed to acquire gold exploration and development company Osino Resources for C$287m ($214m).
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 C$0.775 ($0.58) in cash and issue 0.0801 shares of DPM per each Osino share.
The total consideration implies a value of C$1.553 per ($1.16) Osino Share and a total equity value of C$287m ($214m) 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% of the combined company.
Osino Resources president and CEO Heye Daun said: “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.
“We arae very proud to have attracted a company of DPM’s calibre, 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.”
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.
CIBC Capital Markets served as the exclusive financial advisor to DPM and its Board of Directors, Cassels Brock & Blackwell as DPM’s legal advisor.
BMO Capital Markets and Treadstone Resource Partners served as financial advisors and Stikeman Elliott as legal advisor to Osino, while Eight Capital served as financial advisor to Osino Special Committee on the transaction.
Dundee Precious Metals president and CEO David Rae said: “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.
“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.”
