Osino bets big in Namibia
Namibia’s thriving minerals exploration sector was in the news again this week when Osino Resources announced that the company has entered into an agreement to acquire B2Gold’s Ondundu project close to Windhoek.
The Osino/B2Gold deal is the latest in a number of significant mining developments in Namibia, which has emerged as a top spot for geologists and exploration companies over the past few years.
Both Osino and B2Gold have established projects in Namibia, with Osino making great discoveries at its Twin Hills project close to the town of Karabib, about 180km from Windhoek, the capital of Namibia. Twin Hills is adjacent to the successful Navachab mine, the oldest gold mine in Namibia. Navachab is owned by QKR and was once operated by Anglogold.
B2Gold, headquartered in Vancouver, Canada, runs a great gold operation at Otjikoto, in the north-central parts of Namibia, about 300km north of Windhoek. The company recently develop an underground mine after operating Otjikoto as a highly productive and efficient surface mine for many years.
Heye Daun, Osino’s President and CEO, is a Namibian by birth and knows the semi-desert region of Southern Africa like the back of his hand. Daun and his Namibian team has extensive experience in exploring the country. He says that Ondundu has great mineralisation with the potential to host a significant open-pit gold resource.
“We believe that Ondundu is a highly accretive transaction for Osino which provides significant additional scale, diversification and consolidation of Osino’s Namibian projects,” says Daun.
Osino plans to build on the excellent exploration and resource development work which B2Gold completed over the last six years and to quickly advance the project to compliant resource stage,” he adds.
Ondundu is located about 130km northwest of Osino’s Twin Hills and the two project could be co-developed.
The consideration payable is partially deferred and upon close will result in B2Gold becoming a strategic shareholder of Osino. “We are extremely 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,” says Daun.
Leon Louw is the founder and editor of WhyAfrica. He specialises in natural resources and African affairs.
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