Dundee Precious Metals announces acquisition of Osino Resources for C$287m

Dundee Precious Metals Inc. (TSX:DPM) and Osino Resources Corp. (TSXV: OSI) have jointly announced a definitive agreement under which DPM will acquire all issued and outstanding common shares of Osino. This transaction, valued at C$287 million, significantly expands DPM’s portfolio in the gold mining sector.

The Twin Hills Gold Project – A Key Asset

Central to this acquisition is the Twin Hills gold project located in Namibia, a region known for its mining-friendly environment. The project, currently in its advanced stage, promises to add substantial value to DPM’s operations. With a feasibility study indicating an average annual production of 175,000 ounces of gold over the first five years, Twin Hills is expected to be a significant contributor to DPM’s growth.

Terms of the Transaction

In this arrangement, Osino shareholders will receive a mix of cash and DPM common shares, amounting to a total Consideration that implies a value of C$1.553 per Osino Share. This offer represents a premium based on the closing price and 30-day volume-weighted average price (VWAP) of Osino Shares as of a specified date.

Strategic Benefits for Dundee Precious Metals

The acquisition of Osino furthers DPM’s strategic goals in several ways:

– Enhanced Production Capabilities: The addition of Twin Hills boosts DPM’s production profile significantly.

– Diversification: By acquiring Osino, DPM diversifies its asset base geographically and operationally.

– Long-term Potential: The exploration potential in Namibia’s Damara Gold Belt presents long-term opportunities for further discoveries and development.

Impact on Osino Resources

For Osino Resources, the transaction offers its shareholders a lucrative exit strategy and the opportunity to benefit from DPM’s broader portfolio. Osino’s integration into DPM’s operations is expected to leverage the latter’s expertise and financial strength for continued exploration and development.

Next Steps and Closing Details

The transaction is subject to customary closing conditions, including regulatory approvals. It is expected to close by a specified date, subject to the satisfaction of these conditions.

Advisory Roles in the Transaction

Various financial and legal advisors have been instrumental in facilitating this acquisition. Their expertise has been crucial in ensuring a smooth and beneficial transaction for both parties involved.