Erasmus Shalihaxwe
Dundee Precious Metals (DPM) is planning to invest between N$6 to N$7 billion after acquiring 100 percent shares in Osino Resources Corp.
Osino Resources Corp owns the Twin Hills Gold Development project, a Mining site in the area of Karibib in the Erongo Region.
DPM announced yesterday that the planned investment includes construction of the project, infrastructure and employment. With activities planned to take place between 2024 and 2026.
The company is also estimated to pay N$700 million per year to the Namibia government for 13 years. While 75 percent of goods and services that will be sourced during operations are expected to be from Namibia.
“DPM expects to employ approximately 550 people for the duration of the project’s 2-year construction period, and during the operation’s 13-year mine life, DPM expects to employ 870 people, of which over 95 percent will be Namibian. This excludes the multiplier effect of additional local employment generation because of the mine’s development and operation.
Our Corporate Social Responsibility efforts will continue to build on Osino’s success with the Twin Hills Foundation targeting education and relief of poverty for local stakeholders. DPM expects to invest in upgrades to water and power infrastructure and encourage home ownership that will benefit stakeholders in local communities, and the procurement of goods and services will prioritise local supply,” said the company.
DPM President and Chief Executive Officer David Rae said the Twin Hills project represents a unique opportunity to add a high-quality development asset in an excellent mining jurisdiction to the company’s portfolio. Because the project provides a foundation for future production profile with production targeted for 2026, as well as significant exploration upside.
“This transaction also allows us to leverage our strong local relationships in Namibia, which we have built over many years, and continue our focus on growing our portfolio of gold assets. With Twin Hills and Čoka Rakita, DPM will have an extremely attractive growth pipeline and the financial capacity to fund it internally through our existing cash balance and free cash flow.”
The Osino team have done an excellent job in discovering and progressing Twin Hills to this point. We are excited to advance the project and build on their efforts to unlock further value for all of our stakeholders,” said Rae.
Osino Resources President and Chief Executive Officer, Heye Daun said the company is very pleased to be delivering the Twin Hills gold project to DPM. Because DPM is a highly credible and well-financed builder and operator of gold mines with the technical skills and financial resources to progress the project through construction and into production.
“We are very proud to have attracted a company of DPM’s calibre, thereby securing the future development of Twin Hills, which we believe has the potential to become Namibia’s third and largest gold mine. Since 2019, the Osino team has made great strides in discovering and advancing Twin Hills and de-risking the project from a technical and permitting perspective.
We believe that handing over the project to DPM at this critical juncture is in the best interest of our shareholders and local stakeholders. Our well-established and highly credible Namibian exploration and technical team will continue to contribute meaningfully as DPM takes the project to the next level,” he said.
