Osino Resources may not sell the Twin Hills Gold Project to Dundee Precious Metals after announcing Monday that there is a better offer of N$5,2 billion (C$368 million).
The two companies announced in December 2023 that Dundee Metals had agreed to acquire the Twin Hills Gold Project for N$4 billion C$287 million).
Osino and a new company have confirmed their intention to execute the proposed arrangement agreement promptly following the termination of the Dundee Precious Metals arranged arrangement.
Dundee Precious Metals confirmed that Osino had notified them of the new offer but said they would not propose to amend the terms of the December 2023 arrangement agreement in light of the superior proposal.
In a statement Monday, Osino said the unnamed company’s superior proposal offers the shareholders a cash consideration of C$1.90 for each common share, valuing Osino at approximately C$368 million.
In addition, the unnamed company will provide Osino with a loan comprising a US$10 million facility concurrently with the execution of the arrangement agreement to enable the continued, fast-tracked development of the Twin Hills gold project and to fund other liquidity needs.
Furthermore, the unnamed company will advance an amount equal to the termination fee payable by Osino if the Dundee Precious Metals arrangement agreement is terminated due to the new offer.
“Commensurate with the increase in consideration, the proposed arrangement agreement with the Offeror provides for an increase in the termination fee to US$9.55 million, payable in certain circumstances by the company to the Offeror and the repayment of amounts owing under the New Facility,” Osino said in the statement.
