Osino Resources expects a final decision from the Namibian Competition Commission (NaCC) on its acquisition by Chinese firm Shanjin (formerly Yintai Gold) by early September.
Currently, competition law clearance from NaCC remains the only outstanding approval needed to conclude the deal, with clearance expected soon.
NaCC received the third of three Chinese regulatory approvals on May 28, 2024. The mining company anticipates that the transaction will be considered for determination at the next NaCC Board meeting, expected to occur in August.
However, NaCC has yet to announce the exact date. The final decision on the acquisition is anticipated before the end of the statutory review period in early September 2024, or earlier, depending on the final date for the NaCC Board meeting.
The Canadian-based Osino stated that communications with NaCC continue to progress positively as the competition watchdog “considers the application of the previously announced statutory plan of arrangement, pursuant to which precious metals miner Shanjin International Gold will take over Osino at C$1.90 a share.”
The deal will grant Yintai a US$5.6 billion (N$96 billion) market capitalisation as a publicly traded company on the Shenzhen Stock Exchange, with Chinese outbound investment approvals expected to be obtained concurrently with Namibian competition approval.
The parties have made provisions for the possibility that NaCC approval might not be obtained in time, allowing for the outside date to be extended by 30-day increments for up to 90 days.
The outside date was previously extended by mutual agreement from June 30, 2024, to July 30, 2024, and has been extended again to August 29, 2024.
An outside date is a pre-agreed date where either party can terminate the merger agreement and walk away from the deal without penalties if the merger or acquisition has not been completed by then.
Under the agreement, Osino Resources will retain only its gold-related assets in Namibia, primarily the Twin Hills Gold Project in central Namibia, where the company has completed more than 250,000m of drilling, along with the exploration projects Ondundu and Eureka.
