Toronto’s Dundee Precious Metals Inc. (TSX: DPM) won’t be following through with its takeover of Osino Resources Corp. (TSX-V: OSI) (OTCQX: OSIIF) announced in December due to a superior bid from an anonymous company.
Dundee said Tuesday that if Osino terminates their previous definitive agreement it will be required to pay a US$9.55 million termination fee. The offer from Dundee will not be amended to match the higher bid, the Ontario-based gold producer says. Dundee currently holds 12.7 million shares of Osino.
“Based on the closing price of the DPM common shares on the Toronto Stock Exchange as of Feb. 16, 2024, the superior proposal represents a premium of approximately 32 per cent,” Osino said in a news release.
The new buyer, a “foreign-based mining company,” will also offer Osino a US$10 million loan for continued development of Namibia’s Twin Hills gold project and other corporate expenses. That advanced operation is the main asset making Osino an attractive investment prospect.
New buyers offer N$5bn for Osino Resources, surpassing Dundee's N$4bn offer
Osino Resources Corp (Osino) says it has received a compelling proposal from an unnamed foreign mining company, surpassing Dundee Precious Metals' offer by over N$1 billion.
Under the new proposal,… pic.twitter.com/wiktOURSH1
— The Brief (@TheBriefLive) February 20, 2024
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Twin Hills has 20-year license from Namibian authorities
The advanced Namibia gold operation is expected to produce 175,000 ounces per year for its first five production years starting in 2026. Its future open-pit is anticipated to last 13 years.
Within reasonable proximity to Twin Hills, Osino also operates the Odundu gold and Omaruru lithium projects.
Dundee remains focused on its two Bulgaria mines, the Loma Larga operation in Ecuador and an exploration-stage Serbia project.
“DPM continues to benefit from strong free cash flow from our existing operations, and we have an attractive organic growth pipeline including the high-grade Čoka Rakita gold project in Serbia,” Dundee President David Rae said.
Rae’s company has a strong focus on environmental, social and governance activities. Further, Dundee has established a nursery and rescue centre for local plants and wildlife in Ecuador, among other things.
Other Latin America gold miners with strong ESG include Calibre Mining (TSX: CXB) (OTCQX: CXBMF), known for planting trees and assisting beekeepers in Nicaragua and Aura Minerals Inc. (TSX: ORA) (OTCQX: ORAAF), which recently established a winery and vineyard at a Honduras gold mine to benefit the local economy.
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