Osino gets superior proposal from mystery bidder

Osino Resources has received a superior acquisition proposal of C$1.90 per share all cash deal, valuing the company at $368 million, above the $1.55 per share cash and stock offer made in December 2023 by Dundee Precious Metals.

Based on the closing price of Dundee shares on February 16, the new offer represents a premium of about 32% over Dundee's bid and 68% over Osino's share price before the announcement of Dundee's offer.

The unnamed bidder will also provide Osino with a US$10 million loan to enable the continued, fast-tracked development of the Twin Hills gold project in Namibia and cover the $10 million termination fee that would be payable to Dundee if its deal does not proceed. The loan facility will be into Osino Shares at $1.39 per share.

The new offer also comes with a US$9.55 million termination fee.

Dundee, having been notified of the superior offer and having the right to match or exceed it, said it does not intend to improve on its December proposal. Upon cancellation of the Dundee agreement, Osino will cancel the special meeting of security holders scheduled for March 1, which was intended to vote on the Dundee offer, and a new meeting date will be scheduled to vote on the new offer.

Dundee had offered to pay 77.5c in cash and 0.0801 of a Dundee share for each Osino share.

Twin Hills hosts 2.15Moz of reserves. A June 2023 feasibility study detailed an open-pit project with a 13-year mine life and average production of 162,000ozpa of gold, with 175,000ozpa over the first five years, with first production targeted in the second half of 2026.