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Competition commission holds key to Osino takeover

Chinese firm Shanjin International Gold’s acquisition of a Canadian gold exploration company depends on the Namibian Competition Commission (NaCC).

Osino Resources president and chief executive Heye Daun on Friday in a statement said Shanjin International (formerly known as Yintai Gold Co Ltd) has received the third of three Chinese regulatory approvals on 28 May, and the NaCC’s clearance would conclude the deal.

The NaCC’s interest in the deal, involving two foreign companies, stems from the fact that Osino is a gold exploration and development company focused on the fast-tracked development of its wholly owned Twin Hills gold project in central Namibia.

The Twin Hills project benefits significantly from Namibia’s well-established infrastructure with paved highways, railway, power and water in close proximity.

The statement said communication between Osino and the NaCC is progressing, as the commission considers the application of the previously announced statutory plan under the Business Corporations Act (British Columbia, Canada) for Shanjin International to acquire all of the outstanding common shares of Osino for a cash consideration of C$1,90 per share.

“The NaCC’s final decision with respect to the arrangement is expected before the end of the statutory review period in early September 2024, or earlier, depending on the final date the NaCC board meets,” Osino said.

The agreement for the acquisition, dated 23 February, had contemplated the possibility of the NaCC’s approval not being obtained by 30 June.

It provided for either party to extend the outside date in 30-day increments by up to a maximum of 90 days.

“The outside date was previously extended by mutual agreement of the parties from 30 June to 30 July, and has been extended again by mutual agreement of the parties to 29 August,” Daun said in the statement.

Since August 2019, Osino has completed more than 250 000m of drilling, as well as a suite of specialist technical studies, culminating in the ‘Twin Hills Definitive Feasibility Study’ dated 12 June 2023.

The study describes a technically simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of over 162 000 ounces. – email: matthew@namibian.com.na

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