The Chinese company Shanjin International Gold, formerly Yintai Gold, now owns Osino Resources.
Shanjin intends to cause Osino to delist the Osino Shares from the TSX Venture Exchange, submit an application to cease to be a reporting issuer, and otherwise terminate its public company reporting requirements as soon as possible.
Shanjin International Gold outbid Dundee Precious Metals in acquiring Osino Resources’ assets for C$368 million.
The acquisition was announced in February 2024.
The sale came months after Osino recorded a net loss of US$1,9 million in September 2023.
The Twin Hills Gold Project, which should start production in 2026, requires US$365 million in construction, which is scheduled for July 2024.
A June 2023 feasibility study puts the project’s life of mine at 13 years. It is expected to produce an average of 162,000 ounces per year.
As part of the agreement, Shanjin International Gold will provide Osino with a loan comprising approximately US$10 million facility provided 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 of Osino.
Shanjin International Gold will also pay Dundee Precious Metal a termination fee of US$9.55 million (N$145 million).
Shanjin International Gold is a mining company publicly listed on the Shenzhen Stock Exchange with a market capitalization of US$5.6 billion as of February 23, 2024.
The company had over US$570 million in cash and cash equivalents as of December 31, 2023.
Shanjin International Gold conducts businesses in the mining and exploration of precious and non-ferrous metals.
