Osino Resources will be required to pay Dundee Precious Metals N$140 million (C$10 million) if it terminates the arrangement agreement to sell the Twin Hills Gold Project.
The two companies agreed to sell the Twin Hills Gold Project in December 2024.
Dundee Precious Metals agreed to pay about N$4 billion, but Osino has found a new buyer offering about N$5,2 billion.
Currently, Dundee Precious Metals holds 12,699,157 common shares of Osino.
Dundee Precious Metals Inc. confirmed receiving a notice from Osino Resources Corp. has made a binding proposal to acquire all of the issued and outstanding common shares of Osino for a purchase price of C$1.90 per share, payable in cash.
The Canadian company said Osino has further advised them that its board of directors has determined that the new proposal constitutes a superior proposal as defined in the arrangement agreement between the two companies dated December 17, 2023.
Under the terms of the December agreement, Dundee Precious Metals said it had agreed to acquire all of the issued and outstanding common shares of Osino for consideration of C$0.775 in cash per Osino share.
“After thorough review and analysis, and in consultation with its advisors, the company’s board of directors has determined that the company will not propose to amend the terms of the Arrangement Agreement, and accordingly, the company has delivered notice of such decision to Osino,” Dundee Precious Metals said Tuesday.
Dundee Precious Metals CEO David Rae said the company said it continues to benefit from strong free cash flow from existing operations and has an attractive organic growth pipeline, including the high-grade Čoka Rakita gold project in Serbia, where the preliminary economic assessment is on track for the second quarter of 2024.
“We continue to rigorously adhere to our disciplined capital allocation framework, focusing on shareholder value,” Rae said.
