Yintai Gold Co. Ltd has received the third and final Chinese regulatory approval to proceed with its acquisition of Osino Resources Corp.
Yintai has obtained the approval of the State Administration of Foreign Exchange of the People’s Republic of China (SAFE), which is the third and final Chinese regulatory approval, marking progress toward closing the deal by the end of the first half of 2024.
This comes after Yintai obtained the approval of the Ministry of Commerce of the People’s Republic of China in April and the approval of the National Development and Reform Commission of the People’s Republic of China earlier in May.
The Namibian Competition Commission approval now remains the only outstanding step, with Osino expecting the process to be concluded this month.
“The Arrangement, therefore, remains on track to close on or about the end of H1 2024, subject to approval by the Namibian Competition Commission, which Osino continues to expect to receive in June,” said Osino President and CEO Heye Daun.
Under the approved arrangement, Yintai will acquire all outstanding common shares of Osino for C$1.90 per share.
The transaction, valued at N$5.3 billion in cash, has already garnered unanimous support from Osino shareholders, with 99.9% of its shareholders having voted in favor of the deal at the company’s special meeting.
Yintai, which trades on the Shenzhen Stock Exchange, has a market cap of N$108 billion (US$5.6 billion).
Meanwhile, as part of the deal, Yintai Gold has 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 on the back of DPM’s December definitive agreement to acquire Osino Resources for N$4 billion.
Osino is a Canadian gold exploration and development company focused on the fast-tracked development of our wholly owned, Twin Hills Gold Project in central Namibia.