B2Gold Mining Investments Limited has agreed to receive Osino Resources Corporation shares instead of a N$245.1 million payment for its Ondundu gold exploration property.
Osino’s President and CEO, Heye Daun said the Canadian company appreciates B2Gold’s agreement to accept Osino shares escrowed over time, as payment of a significant portion and up to all of the purchase price for Ondundu.
“B2Gold’s willingness to accept shares instead of cash is a vote of confidence in Osino, and goes a long way to preserving cash treasury in this challenging market environment. We look forward to rapidly creating value from Ondundu with the ongoing exploration and development of the project. We are already working on a maiden mineral resource estimate which is expected to be published well before the end of 2022. We have also commenced with additional metallurgical test work, with the aim of demonstrating a development pathway for the Ondundu project. We believe that Ondundu has significant potential,” he said.
Under the initial Acquisition Agreement, Osino has agreed to purchase all of the issued and outstanding shares of the Namibian company, Razorback Gold Mining Company (Proprietary) Limited, which owns 100% of the Namibian exclusive prospecting license 3195 covering 19,969 hectares located approximately 130km northwest of Osino’s Twin Hills Gold Project in Namibia.
The deal will also see Osino getting all technical information and other books and records in respect thereof for an aggregate purchase price of N$245.1million (US$15.2 million) including a combination of cash, deferred cash and shares.
Under the Amendment, the parties agreed that the purchase price would be settled through more shares in lieu of cash.
The acquisition agreement, however, is still subject to Namibian regulatory approvals and certain other customary closing conditions.
B2Gold has invested N$161.2 million (US$10 million) in exploration expenditure between 2015 and 2021, according to the deal announcement.
B2Gold owns and operates the Otjikoto Mine, currently the largest gold producer in the country, which it acquired through a merger with Auryx Gold Corp. in December 2011.
