Yintai, a prominent mining company, has announced its acquisition of Osino Resources Corp, a Canadian gold exploration and development firm. The deal, valued at approximately C$368 million, marks a significant development in the mining sector.
Acquisition Details
Yintai will acquire all outstanding common shares of Osino Resources Corp through a binding arrangement agreement. The transaction, valued at C$1.90 per share, represents a premium of approximately 32% over the previous offer from Dundee Precious Metals Inc. Additionally, Osino will receive a cash infusion of US$10 million (equivalent to about ZAR 190 million) for operational purposes.
Reasons for Acquisition
The acquisition is seen as a strategic move by Yintai to bolster its presence in the gold mining sector, particularly in Namibia. Osino’s portfolio, which includes the Twin Hills Gold Project and other exploration projects, presents an attractive opportunity for Yintai to expand its operations.
Transaction Process
The acquisition will be completed through a court-approved plan of arrangement under the Business Corporations Act (British Columbia). Approval from Osino security holders is required, with a special meeting scheduled for April 29, 2024. Upon closing, Osino shares will be delisted.
Board Recommendations
Both the Osino Board and the Special Committee unanimously recommend that shareholders vote in favor of the transaction. Fairness opinions from BMO Capital Markets and Eight Capital support the Transaction.
Forward-Looking Information
The press release contains forward-looking statements regarding the acquisition and timing of the special meeting, subject to various risks and uncertainties.
About Yintai Gold Co., Ltd: Yintai is a publicly listed mining company with a market capitalization of US$5.6 billion. The company operates several mining operations in China and has significant experience in precious and non-ferrous metal exploration.
About Osino Resources Corp: Osino is a Canadian gold exploration and development company focused on the Twin Hills Gold Project in central Namibia.
Conclusion
The acquisition of Osino Resources Corp by Yintai signifies a significant milestone in the mining industry. It provides Osino shareholders with a premium offer and immediate liquidity while enabling Yintai to expand its portfolio with a high-quality gold asset.
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