Osino Resources Corp. (Osino) says it expects regulatory approval of its acquisition by Yintai Gold Co. from the Namibian Competition Commission (NaCC) by August or early September.
Osino President and CEO Heye Daun says the NaCC’s review process, initially set to conclude by 30 July 2024, has encountered a delay following the postponement of its June meeting.
Despite this delay, Daun remains optimistic about the timeline.
“The arrangement remains on track and all closing conditions, other than the NaCC approval, have been met,” he said.
He explained that the NaCC, responsible for evaluating mergers under Namibian law, has forwarded additional clarifying questions to both Osino and Yintai as part of its ongoing analysis.
According to local counsel, the typical review period by the NaCC ranges from four to six months from the submission date, which in this case was 3 April 2024.
“We still expect approval to be received within the timeframe prescribed by the Namibian Competition Act,” Daun emphasised.
The arrangement agreement, signed on 23 February 2024, between Osino and Yintai includes provisions for extending the review period beyond 30 June 2024, up to 30 July 2024, as mutually agreed upon due to the NaCC’s timing update.
In response to reaching this milestone, Daun remarked that “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.”
The acquisition by Yintai Gold has also gained regulatory clearance from Chinese authorities, including the State Administration of Foreign Exchange (SAFE), paving the way for the transaction’s completion by mid-2024.
Previous clearances were obtained from China’s Ministry of Commerce and the National Development and Reform Commission.
Under the approved terms, Yintai will acquire all outstanding common shares of Osino for C$1.90 per share, totalling N$5.3 billion in cash.
This deal has secured overwhelming support from Osino shareholders, with 99.9% voting in favour at the company’s special meeting.
Yintai Gold, listed on the Shenzhen Stock Exchange with a market capitalisation of N$108 billion (US$5.6 billion), has also committed to an immediate cash infusion of N$193 million (US$10 million) for Osino’s operational needs, along with full reimbursement of the termination fee paid to Dundee Precious Metals Inc.
Osino Resources Corp., based in Canada, focuses on gold exploration and development, primarily centred on its wholly-owned Twin Hills Gold Project in central Namibia.
