Competition commission approves Osino acquisition

The Namibian Competition Commission (NaCC) has given Chinese company Shanjin the green light to acquire all shares in Canadian company Osino Resources.

According to a statement issued by Osino president and chief executive officer Heye Daun, Shanjin (formerly known as Yintai) will acquire all Osino’s outstanding common shares.

The deal is valued at around C$368 million, or C$1,90 (about N$25) for each Osino share.

Daun says Shanjin received the third of three Chinese regulatory approvals on 28 May, as well as the nod from Canadian authorities and the NaCC’s clearance is the final outstanding approval to conclude the deal.

The closing of the sale will occur on or before 29 August, he says.

The NaCC’s interest in the deal, involving two foreign companies, stems from the fact that Osino is a gold exploration and development company focused on the fast-tracked development of its wholly owned Twin Hills gold project in central Namibia.

The acquisition will result in Shanjin owning Osino’s gold assets in Namibia, including the Twin Hills Gold Project.

The Twin Hills Gold Project is located approximately 150km northwest of the capital Windhoek.

The project is comprised of 11 exclusive prospecting licences held over a combined area of 153 206ha in and around the regional towns and settlements of Usakos, Karibib, Omaruru and Wilhelmstal in the Erongo region.

Yintai Gold has reached an agreement with Osino Resources to acquire all outstanding Osino common shares in a deal valued at around C$368 million, or C$1,90 (about N$25) per share.

The buyout offer from Yintai was deemed a ‘superior proposal’ by Osino, leading to the termination of a prior agreement Osino had with Dundee Precious Metals (DPM).

The offer represented almost a 32% premium over the DPM agreement and around 68% premium to Osino’s share price before the DPM agreement.

A study on Twin Hills has described a technically simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of over 162 000 ounces.

– email: matthew@namibian.com.na