CHAMWE KAIRA
The Namibian Competition Commission (NaCC) is currently busy determining whether to sanction the takeover of Osino Resources Corp of Canada by Yintai Gold Company of China. In the same process, the NaCC is considering the approval of the deal involving the sale of Dundee Precious Metals’ owned Tsumeb smelter to Sinomine Resource Group Group also of China.
NaCC spokesperson Dina //Gowases told Observer Money that the commission is currently busy with the investigation to determine the deal but added that the determination depends on the complexity of issues identified during the investigation. Yintai plans to take over Osino Resources for US$272 million.
Osino Resources announced last week that the merger approval application under the Namibian Competition Act has been filed with the Namibian Competition Commission.
On the other hand, Dundee Precious Metals announced that it has entered into a definitive share purchase agreement with a subsidiary of Sinomine Resource Group for the sale of its interest in the Tsumeb smelter. The deal is worth US$49 million.
“The commission conducts thorough investigations before making a determination. This process takes time before a determination can be made,” //Gowases said on the Dundee deal.
In February, Osino announced that it had entered into a binding arrangement agreement to which Yintai will acquire all of the outstanding common shares of Osino. At closing of the Yintai Arrangement, Osino’s portfolio will consist only of gold related assets located in Namibia, primarily the Twin Hills Gold Project in central Namibia as well as exploration projects Ondundu and Eureka.
Xingong Ou, President of Yintai, said the Twin Hills represents a unique opportunity to add a high-quality gold development asset to our portfolio in a stable and mining friendly jurisdiction.
The Twin Hills Gold Project in central Namibia is expected to a simple and economically robust open-pit gold operation with a 13-year mine life and average annual gold production of over 162 000 ounces per annum.
The project is located within Namibia’s prospective Damara sedimentary mineral belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines. Dundee Precious Metals has already signed a definitive share purchase agreement, under which it agreed to transfer all its interest in the Tsumeb smelter.
This transaction includes all associated assets and liabilities through the sale of all shares DPM indirectly holds in Dundee Precious Metals Tsumeb Holding.
The completion of the deal is subject to standard closing conditions including approval under the Namibia Competition Act and the necessary consents from Chinese regulatory authorities for overseas investments.
