Yintai Gold, a China-based entity, has announced its intention to acquire Canadian gold exploration company Osino Resources in an all-cash transaction valued at C$368 million ($272.53 million).
This acquisition supersedes Osino’s previous agreement with Canadian gold miner Dundee Precious Metals, valued at C$287 million, which was disclosed in December. As part of the termination of the deal with Dundee Precious Metals, Yintai Gold will pay a termination fee of $10 million, as outlined in the statement.
Heye Daun, CEO of Osino, expressed appreciation for the prior offer from Dundee Precious Metals while affirming that Yintai Gold’s all-cash proposition presents a substantial premium to the previous offer. Daun characterized the deal with Yintai Gold as a superior proposal, marking a favorable outcome for Osino’s shareholders.
Furthermore, the acquisition is poised to accelerate the development of Osino’s wholly owned Twin Hills gold project located in central Namibia.
The terms of the agreement entail a cash consideration of C$1.90 for each Osino common share. The transaction has received approval from the Osino board special committee, which has recommended it to shareholders, as stated in the announcement.
