Dundee Precious Metals (DPM) has acquired Osino Resources, including the Twin Hills open-pit gold project and other exploration assets in Namibia.
DPM offered Osino shareholders C$0.78 (59 US cents) in cash and 0.08 of a DPM common share for each Osino share.
This transaction has an implied value of C$1.55 ($1.17) per Osino share and an equity value of C$287 million ($216 million).
Since 2010, DPM has maintained the Tsumeb specialised smelter in Namibia, where it processes concentrate sourced from its Chelopech mine in Bulgaria.
By acquiring Twin Hills, the company will increase its current gold production profile of 258,000 oz/y from the Ada Tepe mine in Bulgaria, in addition to the Chelopech and Ada Tepe mines.
Osino concluded a feasibility study on Twin Hills in June 2023, which delineated an open pit project with a thirteen-year mine life and an anticipated annual average gold production of 175,000 oz for the initial five years.
The commencement of production is aimed at the latter part of 2026.
DPM seeks to complete the remaining engineering tasks for Twins Hills to decide on construction by the third quarter of 2024.
During this period, DPM will seek out possibilities to enhance and optimise the mining, building, and execution components of the undertaking, leveraging its expertise in managing and expanding its current portfolio.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
