Osino ditches Dundee for superior proposal from foreign suitor

20th February 2024

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


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Canada-based Osino Resources is walking away from a takeover by gold miner Dundee Precious Metals (DPM) and has instead opted to accept an offer from a foreign-based mining company.

The TSX-V-listed firm on Monday revealed the proposal, which its board said was a “superior” offer to that of DPM.

The new offer will provide Osino shareholders with C$1.90 a share cash, valuing the company at about C$268-million.

The offer also includes a $10-million loan facility to fast-track the development of the Twin Hills gold project, in Namibia, and to fund other liquidity needs.

In addition, the suitor will pick up the bill for the termination fee that Osino will have to pay DPM.

Osino in December entered into a definitive agreement with DPM, which offered shareholders C$0.78 in cash and 0.08 of a DPM common share per Osino share, for an implied value of C$1.55 a share and an overall equity value of C$287-million.

Based on the closing price of the DPM common shares on the TSX on February 16, the new proposal represents a premium of about 32% to the implied value of the consideration offered pursuant to the DPM offer and about 68% premium to the unaffected share price one trading day prior to announcement of the DPM arrangement agreement.

DPM has informed Osino that it will not amend its offer.

Osino stated that it was in the process of settling logistical matters, including payment of the termination fee to DPM in anticipation of the termination of the agreement with that company.

A June 2023 feasibility study completed by Osino on Twin Hills outlined an openpit project with a 13-year mine life and average production of 175 000 oz/y of gold over the first five years, with first production targeted in the second half of 2026.

Edited by Creamer Media Reporter


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