Dundee will not resubmit Osino offer

Dundee Precious Metals (DPM) Inc. this week acknowledged receipt of notice from Osino Resources Corp that a foreign-based mining company has made a binding proposal to acquire all of the issued and outstanding common shares of Osino for a purchase price of Canadian Dollars (C$)1.90 per share payable in cash.

Osino has further advised DPM that its board of directors has determined that the new proposal constitutes a superior proposal as defined in the arrangement agreement between DPM and Osino dated 17 December 2023.

Pursuant to the terms of the Arrangement Agreement, DPM had previously agreed to acquire all of the issued and outstanding common shares of Osino for consideration of C$0.775 in cash per Osino share and 0.0801 of a DPM common share per Osino share, with an implied value of C$1.55 per Osino share.

“DPM continues to benefit from strong free cash flow from our existing operations, and we have an attractive organic growth pipeline including the high-grade Čoka Rakita gold project in Serbia, where the preliminary economic assessment is on track for the second quarter of 2024,” said David Rae, President and Chief Executive Officer.

“We continue to rigorously adhere to our disciplined capital allocation framework with a focus on shareholder value.”

In the event Osino terminates the arrangement agreement in order to enter into a binding agreement with the new offer in respect of the new proposal, Osino will be required to pay to DPM a termination fee in the amount of C$10 million. DPM currently holds 12,699,157 common shares of Osino.

Earlier, Osino announced that it has received a proposal from a foreign-based mining company for the acquisition of all of the issued and outstanding common shares of the company and all of the issued and outstanding securities convertible into common shares for cash consideration of C$1.90 for each common share by way of a plan of arrangement.

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