Massive investment expected from Osino

Canadian gold exploration and development company Osino Resources is expected to invest an estimated N$634 million in the Namibian economy through its Twin Hills gold project.

Osino announced an acquisition agreement with Dundee Precious Metals last year.

The mine is expected to start production towards the end of 2025 or the beginning of 2026, producing 175 000 ounces of gold over the first five years.

According to miningandenergy.com, the company forecast to generate approximately N$4,23 billion in annual revenue from the Twin Hills gold project, with a swift payback period of 22 years in November last year.

Its 2022 sustainability report says the open-cast mine is estimated to have a 13-year lifespan and a processing capacity designed for five million tonnes of ore per annum, with an overall capital cost estimated at N$7 billion.

In addition, the project is expected to create at least 1 000 jobs, prioritising Namibians during both the construction and operational phases, with a commitment to increasing the representation of women.

“Employment will aim to increase female representation, prioritise Namibian nationals and, as far as possible, provide opportunities for local employment with equal pay for similar positions,” the report states.

Osino spent N$124 million on Namibian suppliers in 2022, with N$32 million of it going to suppliers within the vicinity of the project, it says.

The report notes that N$3,4 million has been spent in supporting the community to date.

“This included N$1,37 million spent on early childhood development for 600 children at Karibib and Omaruru, a total of N$790 000 on bulk sewer infrastructure installation in Karibib informal settlement and N$700 000 on an affordable land programme at Karibib.

“Supporting disenfranchised rural artisans nationally cost N$380 000, while other smaller projects accounted for N$120 000,” Osino says.

The Twin Hills project is located within the prospective Damara sedimentary mineral belt and near the producing Navachab and Otjikoto gold mines.

Meanwhile, Osino recently announced it had called for a special virtual meeting of security holders of the company on 1 March, to consider and possibly approve the previously announced plan under which Dundee Precious Metals would acquire all of Osino’s issued and outstanding common shares.

Dundee in December announced it had reached a definitive agreement to acquire Osino Resources, the company developing the Twin Hills project in Namibia, for a total equity value of N$4 billion, under which Dundee would issue 13 766 364 shares to Osino shareholders and existing Osino shareholders would own around 7% of the combined company.

“Twin Hills represents a unique opportunity to add a high-quality development asset in an excellent mining jurisdiction to our portfolio,” Dundee chief executive David Rae at the time.

– email: matthew@namibian.com.na