Published: Dec. 18, 2023 at 11:58 a.m. ET
By Robb M. Stewart
Dundee Precious Metals’ shares fell sharply after it struck a deal to buy Osino Resources for roughly 287 million Canadian dollars ($214.5 million) in a move that will add a long-life open-pit gold project and exploration sites in Namibia to its portfolio.
In Monday morning trading, the Canadian gold mining company’s shares…
By Robb M. Stewart
Dundee Precious Metals’ shares fell sharply after it struck a deal to buy Osino Resources for roughly 287 million Canadian dollars ($214.5 million) in a move that will add a long-life open-pit gold project and exploration sites in Namibia to its portfolio.
In Monday morning trading, the Canadian gold mining company’s shares were 8% lower at C$8.98, narrowing the advance so far this year to 38%. Osino’s shares were up 27% at C$1.44, for a year-to-date gain of 69%.
Dundee said it will buy the Canadian gold exploration company for C$0.775 in cash plus 0.0801 of a Dundee share for each Osino share, implying a value of C$1.55 a share, a 27% premium to the last closing price. In all, Dundee plans to issue 13.8 million shares to Osino’s shareholders, who will end up owning about 7% of the combined company.
Osino’s flagship development is the Twin Hills gold project in central Namibia. Dundee said it plans to advance remaining engineering activities for Twin Hills to reach a construction decision by the third quarter of next year.
Write to Robb M. Stewart at robb.stewart@wsj.com