By Dundee Precious Metals, a Canadian gold mining company, has announced its plans to acquire Osino Resources for approximately 287 million Canadian dollars ($214.5 million). This strategic move will enable Dundee Precious Metals to expand its portfolio with the inclusion of a long-life open-pit gold project and exploration sites in Namibia.
As a result of this news, Dundee Precious Metals’ shares experienced a significant decline, dropping by 8% to C$8.98 in Monday morning trading. However, the company’s shares have still managed to maintain an overall year-to-date gain of 38%. On the other hand, Osino Resources’ shares saw a boost of 27%, reaching C$1.44 and indicating a year-to-date gain of 69%.
Under the terms of the deal, Dundee Precious Metals will offer C$0.775 in cash and 0.0801 of a Dundee share for each Osino share. This values each Osino share at C$1.55, representing a premium of 27% to the last closing price. As part of the agreement, Dundee Precious Metals will issue approximately 13.8 million shares to Osino’s shareholders, granting them ownership of approximately 7% in the combined company.
Osino Resources’ flagship development is the Twin Hills gold project located in central Namibia. Dundee Precious Metals intends to make progress with the remaining engineering activities for Twin Hills, with the goal of reaching a construction decision by the third quarter of the following year.
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