Dundee to acquire Osino’s Twin Hills gold project in Namibia for US$214m
By Confidente Reporter
Dundee Precious Metals (TSX: DPM) is in the process of finalising a deal to buy Osino Resources (TSXV: OSI) for C$214 in cash and shares to acquire its advanced-stage Twin Hills gold project in Namibia.
The half-stock, half-money deal will give Dundee all of Osino’s shares, representing a premium of 44 per cent on the 30-day, volume-weighted average price of Osino stock as of December 15. Osino shareholders will get 7 per cent of the company in the transaction, which is expected to close by June.
Twin Hills is an open-pit project with a 13-year mine life and average annual production of 175,000 oz.
gold over the first five years, with the first production targeted in the second half of 2026, according to a feasibility study released in June. The project received a 20-year license from the government, leaving only site-level permits still required.
The acquisition enhances Dundee’s portfolio as an intermediate producer with its high-margin 258,000 oz. gold annual output from the Chelopech and Ada Tepe mines in Bulgaria, as it advances the Čoka Rakita deposit in Serbia through a preliminary economic assessment.
It strengthens Dundee’s proven and probable reserves by 43 per cent to about 7.
2 million oz. gold. “The project provides a foundation for our future production profile with production targeted for 2026, as well as significant exploration upside,” Dundee president and CEO David Rae said
“This transaction also allows us to leverage our strong relationships in Namibia, which we have built over many years, and continue our focus on growing our portfolio of gold assets,” Rae said. The company already owns a copper smelter in the country that it uses to process concentrate from Chelopech.
Shares in Osino jumped by more than a quarter on Monday in Toronto to C$1.43 apiece, valuing the company at nearly C2 million.
Dundee shares fell more than 9 per cent to C$8.86 for a market value of C$1.6 billion.
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