Chinese mining firm Yintai Gold, on Sunday, said it will buy industry peer Osino Resources Corp in an all-cash deal for C$368 million ($272 million), by acquiring all the outstanding common shares of Osino.
Under this agreement, Yintai will offer cash consideration of C$1.90 for each Osino common share, said the company and added, the deal was approved by Osino board’s Special Committee.
The mining company also said the deal encompasses only gold-related assets located in Namibia, primarily the Twin Hills Gold Project in central Namibia as well as exploration projects Ondundu and Eureka.
The company will purchase Osino for a premium of 32% over the initial proposal of C$1.55 per share from Dundee Precious Metals (DPM). Osino closed trading at C$1.74 per share, on Friday.
Over two months ago, mining peer Dundee Precious Metals entered into an agreement to buy all the shares of Osino in a deal valued at C$287 million, with a premium of 37.2% over Osino’s last close as of December 15.
A week ago, DPM stated if Osino terminates the arrangement agreement in order to enter into a binding agreement with a new proposal, Osino will be required to pay DPM a termination fee of C$10 million and Dundee Precious Metals currently held 12.7 million shares of Osino.
“Whilst we were appreciative of the previous offer from DPM, the all-cash offer from Yintai represents a significant premium to the DPM offer price, thus is clearly a superior proposal, and is an excellent outcome for Osino’s shareholders,” Heye Daun, Executive Chief of Osino.
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