Osino Resources Gets $1.90 Per Share Offer For Company, Pushing Dundee Precious Metals Out

A bidding war appears to be underway for Osino Resources (TSXV: OSI). Back in December, Dundee Precious Metals (TSX: DPM) had announced it had entered into definitive agreement to acquire Osino in a friendly takeover. The acquisition was focused on Osino’s flagship asset, the Twin Hills open pit gold project, along with its exploration portfolio in Namibia.

The Twin Hills project, with a projected mine life of 13 years, is expected to yield average annual gold production of 175,000 ounces over its initial five years of operation. The property holds proven and probable reserves of 2.15 million ounces of gold.

Under the DPM deal, shareholders were set to receive $0.775 in cash per share and 0.0801 of a DPM common share, with total consideration figured to be $1.55 per share at the time of announcement. The figure placed a value of $287 million on Osino as a whole.

In tandem with the agreement, DPM committed to purchasing $10 million worth of Osino common shares through a concurrent private placement, further solidifying its investment in the company.

“Superior proposal”

With shareholders set to vote on March 1 to approve the transaction, Osino last night revealed that it had received a competing proposal from a foreign-based mining entity, offering $1.90 per share in cash, which the Osino board has deemed to be a superior proposal.

The proposed acquisition, valuing Osino at approximately $368 million, encompasses not only a favorable cash consideration but also includes a significant loan facility earmarked for expediting the development of the Twin Hills gold project, compared to the DPM deal.

The offer is said to consist of $1.90 per common share, with the entity to provide a US$10 million loan for the fast-tracked development of the Twin Hills project, and an advance in an amount equal to the termination fee payable related to the DPM transaction. The loans provided would be convertible into shares at $1.39 per each, at the option of the foreign entity at any time.

The new offer amounts to a 32% premium over that of DPM’s offer.

Osino has informed DPM of the superior proposal, commencing a five-day matching period during which DPM could propose amendments to the existing arrangement agreement. However, DPM has already stated it will not pursue amendments to its original offer.

Osino Resources last traded at $1.73 on the TSX Venture.


Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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