Osino deal secures court and second Chinese regulatory approval 

Osino Resources Corp has secured final approval from the Supreme Court of British Columbia for its plan of arrangement with Yintai Gold Co. Ltd.

Under the approved arrangement, Yintai will acquire all outstanding common shares of Osino for C$1.90 per share.

Concurrently, Yintai has obtained approval from the National Development and Reform Commission of China (NDRC), marking progress toward closing the deal by the end of the first half of 2024.

This comes as last month the transaction, valued at N$5.3 billion in cash, garnered unanimous support from Osino shareholders, reflecting confidence in the deal’s potential.

Meanwhile, pending regulatory approvals remain from the Namibian Competition Commission and the State Administration of Foreign Exchange of China.

“This means that two of the necessary three Chinese regulatory approvals have now been fulfilled and the arrangement therefore remains on track to close on or about the end of H1 2024, subject to approvals by regulatory authorities, namely the Namibian Competition Commission and the State Administration of Foreign Exchange of the People’s Republic of China,” said Osino President and CEO Heye Daun.

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).

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 on the back of DPM’s December definitive agreement to acquire Osino Resources for N$4 billion.

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