TSX-listed gold exploration and development company Osino Resources has entered into an agreement to acquire the Ondundu gold exploration property, in Namibia, from TSX-listed B2Gold for $15.2-million.
The Ondundu gold project is located 250 km northwest of Windhoek.
“We believe this is a highly accretive transaction for Osino, as it provides significant additional scale, diversification and consolidation of Osino’s Namibian projects.
“We plan to build on the excellent exploration and resource development work B2Gold completed over the past six years and to quickly advance the project to compliant resource stage,” says Osino president and CEO Heye Daun.
“Based on the project’s historical exploration and analysis, we believe the project has the type of mineralisation with potential to host a significant openpit gold resource possibly in the order of more than one-million ounces of contained gold, with the possibility for co-development with Osino’s Twin Hills gold project,” he adds.
Osino agreed to buy all of the issued and outstanding shares of Namibian company Razorback Gold Mining Company, which owns 100% of the Namibian exclusive prospecting licence 3195, covering 19 969 ha located about 130 km northwest of Osino’s Twin Hills project, together with all Ondundu gold project technical information and other books and records in respect thereof.
“The consideration payable is partially deferred and upon closing will result in B2Gold becoming a strategic shareholder of Osino. We are very pleased that B2Gold has agreed to the part-equity structure of the transaction and appreciate B2Gold’s implicit vote of confidence in Osino’s ability to take Ondundu to the next level,” Daun comments. – (Mining Weekly)