The mining company Dundee Precious Metals (DPM) has announced its acquisition of Osino Resources, which adds Osino’s Twin Hills open pit gold project to DPM’s existing portfolio of assets.
The announcement was made at State House in Windhoek on Monday.
David Rae, the president and chief executive officer of DPM, said that a new mining facility will be built close to Karibib.
“We anticipate investment over the next three years to be around N$6 billion to N$7 billion. Once the new facility is in operation we will expect the revenues and royalties from the operations to generate about N$9 billion, which is roughly N$700 million per year for the 13-year life of the Twin Hills project,” said Rae.
He added that 75% of operational spending on consumables will occur in Namibia, which will amount to N$663 million per year.
“This is a very significant investment and we are very excited to bring this into a reality. We also anticipate that we will be employing 550 people per year during the construction, which will commence in 2024 and be completed in 2026,” said Rae.
He added that in the operation phase of the project the company will employ 870 people, with 95% of the employees expected to be Namibians.
Osino Resources chief executive Heye Daun said DPM is a credible and well-financed builder and operator of gold mines with the technical skills and financial resources to progress the project through construction and into production.
“We are very proud to have attracted a company of DPM’s calibre, thereby securing the future development of Twin Hills, which we believe has the potential to become Namibia’s third and largest gold mine,” said Daun.
As a result of the transaction, DPM will acquire a 100% interest in Osino’s Twin Hills gold project.
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