Canada’s Dundee Precious Metals (TSX: DPM) is walking away from its proposed takeover of Osino Resources (TSX-V: OSI) after the target company said on Monday it had received a superior offer from a foreign-based mining company.

The Toronto-based gold producer, with operations and projects located in Bulgaria, Namibia, Serbia and Ecuador, said on Tuesday it would not amend its offer.

The half-stock, half-money deal inked in December, would have given Dundee all of Osino’s shares for C$0.775 each plus 0.0801 of a Dundee share, with an implied value of C$1.55 per Osino share. The offer represented a total equity value of C$287 million ($213m).

The new takeover bid, from an unnamed company, gives Osino’s shareholders C$1.90 cash for each common share they hold, valuing Osino Resources at approximately C$368 million ($273m). In addition, the suitor will pick up the termination fee bill that Osino will have to pay Dundee Precious Metals.

Osino Resources’ allure stems from its advanced-stage Twin Hills gold project in Namibia. The proposed open-pit will have a 13-year mine life and average annual production of 175,000 ounces of gold over the first five years. First production is expected in the second half of 2026, according to feasibility study released in June. Namibia has granted the project a 20-year licence leaving only site-level permits still required.

The suitor has also offered Osino Resources a $10-million loan to continuing the fast development of Twin Hills and to fund other liquidity needs of the company.

Source: MINING.COM – Read More