Canadian company Osino Resources has secured a new partner to finance the development of Namibia’s Twin Hills gold project into a fully fledged gold mine.
This comes after the company spent N$1,5 billion since 2019 on preparatory work, including a feasibility study and a drilling programme.
This was announced by Osino founder and chief executive Heye Daun at a media conference on Friday afternoon.
Daun introduced Shanjin International (formally Yintai Gold) president Ou Xingong and managing director Tony Zhang, who are taking over the Osino project.
He said the Twin Hills project is now at a preconstruction stage.
“We were able to finance ourselves for exploration and studies, spending about C$130 million, but the capital to build this mine would reach US$400 million and Osino never had that kind of capital,” he said.
Daun noted that they started looking for a financial partner about a year ago.
China-based Yintai Gold reached an agreement with Osino last year to acquire all outstanding Osino common shares in a deal valued at around C$368m (US$272,35m) or C$1,90 per share.
Upon completion of the deal, Osino shares were delisted.
The acquisition of Osino Resources by Shanjin International received final approval from the Namibian Competition Commission on 16 August.
Shanjin also obtained the approval of the Chinese ministry of commerce, as well as the National Development and Reform Commission of China in April.
The deal also got overwhelming support from Osino shareholders, with 99.9% voting in favour of the purchase.
“I am now relieved because the burden of financing the project is off my back, as Osino is now a fully owned subsidiary of Shanjin International,” said Daun.
He noted that the Osino team will stay on to help with the transition.
Ou said Shanjin International is one of the top five gold producers in China, having produced 10 tonnes of gold and 190 tonnes of silver from four gold and one silver mine in China, realising US$200 million net profit in 2023.
He said Twin Hills is the sixth mine added to the company’s portfolio, and the first project in Africa.
The company will continue putting emphasis on environment protection and social responsibility, as well as employing up to 90% of human resources requirements from Namibians, he added.
Daun said although studies projected a 13-year life of mine, he was confident this will be longer.
The company hosted a function to celebrate the acquisition of the Twin Hills project on Friday evening.
It was attended by Chinese ambassador to Namibia Zhao Weiping, Chamber of Mines executives, including its president Zebra Kasete and chief executive Veston Malango, among other stakeholders.
To symbolise the takeover of Osino Resources by Shanjin, Daun presented a copy of the Twin Hills feasibility study report to Ou, who expressed commitment to making the project a success.
He said work to develop the Twin Hills project into a gold mine will start soon.
As part of its social responsibility, Shanjin International donated N$18 million to the Twin Hills Trust.
– matthew@namibian.com.na
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