Canadian miner Dundee Precious Metals (DPM) has made a strategic move in the gold exploration industry, acquiring Osino Resources Corp (OSI) in a cash-and-stock deal worth C$287 million (about N$4 billion). The acquisition, which is a testament to DPM’s financial prowess and strategic planning, will see OSI shareholders owning approximately 7% of the combined entity.
Striking Gold with Twin Hills
DPM’s acquisition of OSI is not just a consolidation of assets, but also a strategic entry into the lucrative world of gold mining in Namibia. At the heart of this acquisition lies OSI’s Twin Hills open pit gold project—an extensive exploration portfolio expected to produce 175,000 ounces of gold annually over the first five years. The project, which has a projected operational lifetime of 13 years, is a golden opportunity for DPM to expand its reach and fortify its asset portfolio.
The Financial Dance
The acquisition deal involves a payment of C$0.775 in cash per Osino share and 0.0801 of a DPM common share per Osino share, implying a total equity value of C$287 million. This represents a premium of 37.2 percent and 44.3 percent based on the closing price and 30-day volume weighted average price of Osino Shares as of December 15. DPM’s move to acquire OSI at a significant premium over its closing price signals its confidence in the long-term prospects of the Twin Hills project and the overall potential of gold exploration in Namibia.
Reaping the Rewards
The acquisition places DPM in a strong position, enabling it to leverage the Twin Hills project’s potential and OSI’s exploration portfolio in Namibia. David Rae, CEO of DPM, has expressed optimism about the project, stating that it lays a foundation for future production targeted for 2026 and offers significant exploration upside. With this move, DPM not only fortifies its portfolio but also demonstrates its ability to finance growth through its existing cash flow and cash balance.
Ultimately, the acquisition of OSI is a testament to DPM’s strategic vision, financial strength, and commitment to growth. By tapping into the potential of the Twin Hills project, DPM is set to leave an indelible mark on the gold exploration landscape and create value for its shareholders.