Dundee Precious Metals announces acquisition of Osino’s Twin Hills gold play
The parent company of Dundee Precious Metals Tsumeb, the Toronto Stock Exchange listed Dundee Precious Metals Inc announced this week its intention to acquire the full shareholding of Osino Resources Corporation, also listed in Toronto.
Dundee Precious Metals is the owner of the smelter in Tsumeb as well as several gold projects in eastern Europe. Osino Resources is the developer of the Twin Hills gold project in Namibia.
In a joint statement released on Monday 18 December, the two companies stated that they have entered into a definitive agreement with the intention for Dundee to acquire all of the issued and outstanding ordinary share of Osino, pending shareholder and regulatory approvals. The transaction has already been approved by the boards of both Dundee and Osino.
Twin Hills is an advanced open pit gold project with an projected mine life of 13 years and estimated annual production of 175,000 ounces in the first five years.
“Pursuant to the terms of the Arrangement Agreement, DPM will acquire all of the issued and outstanding common shares of Osino (“Osino Shares”) for a consideration consisting of C$0.775 in cash per Osino Share and 0.0801 of a DPM common share per Osino Share (the “Consideration”). The Consideration implies a value of C$1.553 per Osino Share and a total equity value of C$287 million on a fully-diluted in-the-money basis. This Consideration represents a premium of 37.2% and 44.3% based on the closing price and 30-day volume weighted average price (“VWAP”) of Osino Shares as of December 15, 2023, on the TSX Venture Exchange, respectively,” according to the joint statement.
Upon completion of the Transaction, DPM will issue 13,766,364 shares to Osino shareholders and existing Osino shareholders will own approximately 7% of the combined company.
The president and Chief Executive of Dundee, David Rae, commented “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. …The Osino team has done an excellent job in discovering and progressing Twin Hills to this point. ”
Osino president and Chief Executive, Heye Daun, commented “On behalf of Osino shareholders, I am very pleased to be delivering the Twin Hills gold project to DPM, 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.
“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. We believe that handing over the project to DPM at this critical juncture is in the best interest of our shareholders and local stakeholders. Our well-established and highly credible Namibian exploration and technical team will continue to contribute meaningfully as DPM takes the project to the next level.”
