As was the case with B2Gold’s Otjikoto Gold Mine in Namibia, ownership of the land (the surface rights) covering the project area was a major de-risking factor in the development of that project and as Osino we are looking to replicate the success of that approach.
This was said by Heye Daun, Osino’s President and CEO upon announcing that through wholly owned subsidiaries in Namibia, the company has completed the acquisition of all of the surface rights for Osino’s Twin Hills Gold Project following Osino’s acquisition of two farms that encompass the full extent of the mining area for Twin Hills and all related plant infrastructure.
“We are very pleased also to have recently recruited the former General Manager – Corporate from B2Gold’s Namibian operations, who is already instrumental in devising & formulating our land management strategy and how it pertains to the successful permitting and construction of the Twin Hills Gold Project,” Daun said.
The Klein Okawayo farm (approximately 3,000 hectares) and the Okawayo farm (approximately 7,000 hectares) were acquired for an aggregate purchase price of C$8.8 million, plus any relevant taxes, payable in cash and shares of the Company.
“The acquisition of these highly strategic surface rights covering the full extent of the Twin Hills project area is a significant achievement which we have been working on for well over 18 months. Being the private, registered landowners of the Twin Hills project area now not only substantially improves our security of tenure, but it also significantly improves the predictability of the expected timeline to full construction permitting. Other important benefits of being the project landowners are the ease of access to utilities (water and power) and various additional practical logistical, environmental and social considerations which come with ownership of the land, such as ease of construction camp development, access control and the benefit of not having any competing land tenants,” Daun further said.
The Okawayo farmland was acquired directly by Osino’s Namibian subsidiary, Osino Farming Investments (Proprietary) Limited from Siegfried Strzelecki pursuant to an agreement dated August 2, 2021 for consideration totalling N$95,000,000 (approx. CAD $6,924,000) comprised of: cash payment of N$50,000,000; cash payment of N$20,000,000 due on the 12-month anniversary of the June 15, 2023 registration date registering the Purchaser on title of the Okawayo farmland and N$25,000,000 payable in cash or common shares of the Company, at Osino’s discretion and subject to the policies of the TSX Venture Exchange, due on the 24month anniversary of the registration date.
“Within 30 days of the first anniversary payment, Osino has the option to accelerate the second anniversary payment payable in cash or Shares for a 20% discount amounting to a payment of N$20,000,000,” the company said.
The Klein Okawayo farm was acquired indirectly from Adriann van der Walt and Roselett van der Walt by Osino’s Namibian subsidiary, Osino Property Holdings (Proprietary) Limitedby acquiring 100% ownership of the Namibian company, Klein Okawayo Farming (Proprietary) Limited, which owns the Klein Okawayo farm lands free of liabilities pursuant to an agreement dated May 11, 2021 for cash consideration totalling N$26,000,000.
“Osino Holdings became the registered owner of 100% of Farm Holdco effective as of May 22, 2023, subject to securing the required Namibian regulatory approvals which have now been obtained.
“To complete the Farm Acquisitions, Osino complied with all regulatory and ministerial requirements including the granting of a Status of Investment Certificate, merger approvals by the Competition Commission of Namibia and the mandatory waivers for the acquisition of agricultural land in Namibia. In addition, all land taxes, duties, and encumbrances on the properties were fully settled prior to closing. Both transactions have now closed in accordance with the terms and conditions as set out in the signed definitive acquisition agreements,” the company said.
The company also announced that is has approved the grant of 37,916 deferred share units having an aggregate value of $40,000 to independent directors of the Company pursuant to the Company’s Omnibus LongTerm Incentive Plan, which was approved by the Company’s shareholders at its last shareholder meeting.
Osino is a Canadian gold exploration and development company focused on the fast-tracked development of our wholly owned, Twin Hills Gold Project in central Namibia. Since its grassroots discovery by Osino in August 2019 the Company has completed more than 225,000m of drilling and has completed a suite of specialist technical studies culminating in the recently published Twin Hills Definitive Feasibility Study dated effective June 12, 2023. The DFS describes a technically simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of over 169,000oz per annum.