Osino Resources Corp. (Osino) shareholders unanimously approved a deal to sell all outstanding common shares to Yintai Gold Co., Ltd. for C$1.90 per share.
The approval further complements Yintai’s N$5.3 billion cash acquisition of Osino. The gold exploration company said 99.9% of its shareholders voted in favour of the deal at the company’s special meeting held on Monday.
Yintai, which trades on the Shenzhen Stock Exchange, has a market cap of N$108 billion (US$5.6 billion).
Osino’s President and CEO, Heye Daun, outlined the next steps, focusing on obtaining regulatory approvals from key authorities, including the Namibian Competition Commission and Chinese regulatory bodies.
“Once these approvals are secured, the company will proceed to finalise the arrangement, reflecting Osino’s commitment to navigating the necessary processes for the successful completion of the deal with Yintai Gold Co., Ltd,” he said.
Meanwhile, as part of the deal, Yintai Gold offered an immediate cash infusion for Osino of N$193 million (US$10 million) for operations and working capital needs and the reimbursement in full of the termination fee paid to Dundee Precious Metals Inc (DPM).
The development comes in the wake of DPM’s December definitive agreement to acquire Osino Resources for N$4 billion.
Yintai President Xingong Ou said the Osino Twin Hills mine project represents a unique opportunity for the company to add a high-quality gold development asset to its portfolio in a stable and mining-friendly jurisdiction.
“The project provides the foundation for our future production profile with production targeted for 2026, as well as significant exploration upside. We are excited to leverage the excellent work done by the Osino team in discovering and progressing Twin Hills to this point and we look forward to working with the existing Osino team to grow their Namibian activities and to implement the construction of the project. We are impressed with the responsible mining approach which the Osino team has built, and we intend to continue and to grow that approach,” he said.
Osino’s portfolio consists only of gold-related assets located in Namibia, primarily the Twin Hills Gold Project in central Namibia as well as exploration projects in Ondundu and Eureka.
The deal was still subject to Chinese outbound investment approvals and Namibia regulatory approval.
Daun noted that Yintai has obtained the approval of the Ministry of Commerce of the People’s Republic of China.
The Company has a final order hearing scheduled for 2 May 2024, before the Supreme Court of British Columbia.
“The Arrangement remains on track to close on or about the end of H1 2024, subject to approval by the Supreme Court of British Columbia and satisfaction of certain other closing conditions,” he said.
