Canada-based company Osino Resources Corp has completed a book build of CAD$2 770 745 in connection with an offering of common shares of the company priced at CAD$1,00 per common share for gross proceeds of up to US$3 million (N$60 million).
According to a statement by Osino president and chief executive Heye Daun, the company recently completed a listing of its shares on the Namibian Stock Exchange (NSX) and was advised by Cirrus Capital (Pty) Ltd regarding the listing.
“We are very pleased to confirm our first book build in Namibia since listing Osino’s shares on the NSX in August.
This financing is a purposeful and strategic capital raise that will increase Osino’s Namibian shareholder base as required as a condition to Osino’s granted mining licence,” he said.
Book building is a method of issuing shares based on a floor price which is indicated before the opening of the bidding process.
It is an alternative method of making a public issue in which applications are accepted from huge buyers such as financial institutions, corporations or high net-worth individuals, almost on firm allotment basis, instead of asking them to apply in public offer.
The book build consisted of Namibian investors increasing Namibian ownership to comply with the mining permit conditions.
Cirrus Capital conducted the book build and acts as Namibian financial adviser to the company and was engaged to act in connection with the offering.
Daun said this book build was aimed primarily at formerly disadvantaged Namibian individual shareholders, and Osino continues to engage with Namibian pension funds with the aim of completing a follow-on financing to achieve a Namibian ownership threshold well above the required 5% under the issued mining licence.
“The completion of this book build demonstrates Osino’s access to Namibian capital markets as an additional source of capital for project development at the Twin Hills Gold Project.”
The book build ensures that Namibians can participate in the development of Osino and its mining operations, retain economic benefits and assist in the growth and development of the Namibia economy.
It further reinforces Osino’s commitment to its host nation and the host nation’s reciprocal support towards the company.
The completion of the financing to purchasers resident in Namibia will further establish the Namibian register for the stock on the NSX and is expected to facilitate further Namibian investment into Osino via the full fungibility with the TSX Venture Exchange, which remains the company’s principal exchange for trading of its shares.
The building of a local Namibian share register for a dual-listed mining company is a first on the NSX and illustrates the increasing maturity and opportunity associated with Namibian capital markets.
Cirrus Capital co-founder Rowland Brown noted that the financing received strong support from Namibian retail and institutional investors.
“We view Osino’s listing and book build as a significant milestone for the company, the NSX and our host nation, Namibia,” said Brown. – email: matthew@namibian.com.na
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