Chinese company Yintai Gold Co Ltd is set to acquire Osino Resources Corp. in a N$5.3 billion cash deal.
Yintai, which trades on the Shenzhen Stock Exchange, has a market cap of N$108 billion (US$5.6 billion).
As part of the deal, Yintai Gold has offered an immediate cash infusion for Osino of N$193 million (US$10 million) for operations and working capital needs and the reimbursement in full of the termination fee paid to Dundee Precious Metals Inc (DPM).
The development comes in the wake of DPM’s December definitive agreement to acquire Osino Resources for N$4 billion.
“While 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. Yintai is experienced, well-financed, and has a highly credible track record of gold mining in China, with the technical skills and financial resources to progress the project through construction and into production. We look forward to working with Yintai to continue to fast-track the development of the project and close this transaction,” Osino President and CEO Heye Daun said.
Yintai President Xingong Ou said the Osino Twin Hills mine project represents a unique opportunity for the company to add a high-quality gold development asset to its 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. We are excited to leverage the excellent work done by the Osino team in discovering and progressing Twin Hills to this point and we look forward to working with the existing Osino team to grow their Namibian activities and to implement the construction of the project. We are impressed with the responsible mining approach which the Osino team has built, and we intend to continue and to grow that approach,” he said.
Osino’s portfolio consist only of gold-related assets located in Namibia, primarily the Twin Hills Gold Project in central Namibia as well as exploration projects Ondundu and Eureka.
The deal is still subject to Chinese outbound investment approvals and Namibia regulatory approval.-miningandenergy.com.na
