The Canadian gold exploration company which is focused on the acquisition and development of gold projects in Namibia, intends to use the net proceeds from the raise to fund expenditures at the company’s local exploration projects and for general working capital purposes.
“In connection with the Offering, Osino may pay finders’ fees to eligible finders in accordance with the rules and policies of the Exchange and applicable securities legislation,” the company said.
Under the terms of the capital raise, the miner is offering up to 5,714,286 Units, which will consist of one common share in the capital of the Company at a unit price of N$3.80.
“Each whole Warrant will be exercisable to acquire one Share at an exercise price of N$5.90 per Share for a period of 24 months from the date of issuance. The securities issued under this Offering will be subject to a statutory hold period of four months and one day from the date of closing. Closing of the Offering remains subject to receipt of all regulatory approvals, including the approval of the Exchange, and is anticipated to occur on or before May 31, 2019.”
The company also announced that subject to finalisation of definitive legal documents, existing shareholders, including Ross Beaty and RCF Opportunities Fund L.P., intend to participate in the offering to maintain their current pro rata ownership in the company.
The participation by Beaty , who is a major shareholder in the junior explorer, will allow him to retain his 20 percent ownership of the company.
Pan American Silver CEO currently owns 11.2 million Osino shares.
Osino’s Namibian interests comprise 22 exclusive exploration licenses located within Namibia’s prospective Damara belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines.
The company is currently focusing its efforts on developing the Karibib Gold Project and defining new exploration targets in the Otjikoto East area and on our other licenses.
The Karibib Gold Project is located about 130 km north-west of Windhoek and by virtue of its location, the projects benefit significantly from Namibia’s well-established infrastructure with paved highways, railway, power and water in close proximity.
Namibia is mining-friendly and lauded as one of the continent’s most politically and socially stable jurisdictions. Osino continues to evaluate new ground with a view to expanding its Namibian portfolio.