Loading prices...

Register/Sign in
ScrapMonster
Are ads getting in your way? Register for Ad-free pages and live data.
Get an instant offer on your damaged car
Mining News December 19, 2023 02:50:00 PM

Dundee to Acquire Osino’s Twin Hills Gold Project in Namibia for $214 Million

Paul Ploumis
ScrapMonster Author
The company already owns a copper smelter in the country that it uses to process concentrate from Chelopech.
Dundee to Acquire Osino’s Twin Hills Gold Project in Namibia for $214 Million

SEATTLE (Scrap Monster): Dundee Precious Metals (TSX: DPM) is buying Osino Resources (TSXV: OSI) for C$287 million ($214m) in cash and shares to acquire its advanced-stage Twin Hills gold project in Namibia.

The half-stock, half-money deal gives Dundee all of Osino’s shares for C$0.775 each plus 0.0801 of a Dundee share, representing a premium of 44% on the 30-day, volume-weighted average price of Osino stock as of Dec. 15. Osino shareholders will get 7% of the company in the transaction expected to close by June.

Twin Hills is an open-pit project with a 13-year mine life and average annual production of 175,000 oz. gold over the first five years, with first production targeted in the second half of 2026, according to feasibility study released in June. Namibia has granted the project a 20-year licence leaving only site-level permits still required.

The acquisition enhances Dundee’s portfolio as an intermediate producer with its high-margin 258,000 oz. gold annual output from the Chelopech and Ada Tepe mines in Bulgaria, as it advances the Čoka Rakita deposit in Serbia through a preliminary economic assessment. It strengthens Dundee’s proven and probable reserves by 43% to about 7.2 million oz. gold.

“The project provides a foundation for our future production profile with production targeted for 2026, as well as significant exploration upside,” Dundee president and CEO David Rae said in a release. “This transaction also allows us to leverage our strong local relationships in Namibia, which we have built over many years, and continue our focus on growing our portfolio of gold assets.”

The company already owns a copper smelter in the country that it uses to process concentrate from Chelopech.

Shares in Osino jumped by more than a quarter on Monday in Toronto to C$1.43 apiece, valuing the company at nearly C$232 million. Dundee shares fell more than 9% to C$8.86 for a market value of C$1.6 billion.

Courtesy: www.mining.com

Are ads getting in your way? Register for Ad-free pages and live data.

How to Recycle

Proper Disposal of Alkaline Batteries

Proper Disposal of Alkaline Batteries

Improper disposal of alkaline batteries can result in various negative consequences. Explore our blog post to discover safe disposal methods.
Christmas Tree Recycling - Responsible Ways

Christmas Tree Recycling - Responsible Ways

Proper preparation and using a reliable Christmas tree recycling directory ensures responsible disposal and maximizes the benefits.
Stop Throwing Away LED Light Bulbs -- Do This Instead

Stop Throwing Away LED Light Bulbs -- Do This Instead

Stop throwing away LED light bulbs and dispose of them responsibly. Proper disposal ensures environmental safety and sustainability.
powered by RecyclingMonster
Are ads getting in your way? Register for Ad-free pages and live data.
×

Quick Search

Advanced Search