Dundee to acquire Twin Hills gold project in Namibia
Dundee Precious Metals is acquiring Osino Resources for $214 million in a half-stock, half-cash deal. The acquisition aligns with Firm’s strategy for growth and diversification in the gold mining sector.
The deal values Osino at C$0.775 per share plus 0.0801 of a Dundee share, representing a 44% premium on the 30-day, volume-weighted average price of Osino stock as of December 15. The main attraction for Dundee is Osino’s advanced-stage Twin Hills gold project in Namibia, an open-pit project with a 13-year mine life and average annual production of 175,000 oz. gold over the first five years.
Potential
Twin Hills is expected to start production in the second half of 2026, pending the receipt of remaining site-level permits. The acquisition enhances Dundee’s portfolio, adding to its high-margin gold production from Chelopech and Ada Tepe mines in Bulgaria.
Dundee’s proven and probable gold reserves increase by 43% to about 7.2 million oz. gold. The project offers significant exploration upside, and Dundee aims to leverage its local relationships in Namibia. Dundee reports having $563 million in cash, an undrawn $150 million revolving credit facility, and no debt. The company’s free cash flow generation of $213 million over the last twelve months will fund development in Namibia and Eastern Europe.
In addition to Twin Hills, Osino has the Ondundu deposit and the Eureka gold discovery, both showing promising gold potential. Dundee holds additional exploration acreage in Namibia’s Damara sedimentary mineral belt. Dundee already owns a copper smelter in Namibia, used to process concentrate from Chelopech. Osino’s shares surged by more than a quarter on the announcement, reaching C$1.43 apiece. Dundee’s shares fell more than 9% to C$8.86. Dundee is also advancing the Čoka Rakita deposit in Serbia through a preliminary economic assessment, with an initial resource of 1.8 million inferred oz. gold.
