China-based mining company Yintai Gold has agreed to acquire Canadian gold exploration and development company Osino Resources in an all-cash deal worth around C$368m ($272m).
Under the terms of the binding arrangement agreement, Yintai Gold will pay a cash consideration of C$1.9 ($1.4) for each common shares of Osino Resources.
Yintai Gold will also provide immediate cash infusion of $10m for Osino Resources` operations and working capital requirements. It includes the termination fee to cancel the latter`s previously announced C$287m ($212m) deal with Dundee Precious Metals (DPM).
Osino Resources owns the advanced-stage, multi-million-ounce Twin Hills open-pit gold project in Namibia along with an extensive exploration portfolio in the African country. The company’s exploration assets include Ondundu and Eureka.
Yintai Gold president Xingong Ou said: “Twin Hills represents a unique opportunity to add a high-quality gold development asset to our portfolio in a stable and mining friendly jurisdiction.
“The project provides the foundation for our future production profile with production targeted for 2026, as well as significant exploration upside.”
The completion of the proposed transaction will result in the delisting of Osino Resources’ shares.
Osino Resources president and CEO Heye Daun said: “Whilst we were appreciative of the previous offer from DPM, the all-cash offer from Yintai represents a significant premium to the DPM offer price, thus is clearly a superior proposal, and is an excellent outcome for Osino’s shareholders.”
The agreement is anticipated to finalise within the first half of this year. It is contingent upon specific conditions such as obtaining necessary regulatory approvals and adhering to the timing outlined in the Namibia Competition Act.
