Osino Resources Corp. reported that it has received eight project finance proposals for the construction financing of its fully owned Twin Hills Gold Project in Namibia from reputable institutions.
Image Credit: CloudVisual/Shutterstock.com
Receiving indicative term sheets is a significant step in the financing process since it confirms Namibia’s status as a top lending country and, more particularly, Twin Hills’ capacity to secure funding. The process is ongoing while the company attempts to adhere to the project development schedules.
We are very pleased with the competitiveness of the process and resulting quality of project financing offers received from 8 reputable institutions with impressive track records of successful project financing. Choosing the appropriate financing partners is an important next step for Osino.
Heye Daun, Co-Founder, President and Chief Executive Officer, Osino Resources Corp.
Daun added, “We look forward to the appointment of our preferred debt financing provider and finalizing terms in the coming months as we continue to advance the development of Twin Hills.”
Project Finance Process
In the next months, Osino plans to choose its preferred finance partners and move on with the project financing package concurrently with the completion of the definitive feasibility study, which is anticipated to be completed by the end of June 2023.
This would enable a decision on investment and the initiation of early works in the second half of 2023, subject to the conclusion of all required licenses and permits.
Terrafranca Capital Partners Ltd has been chosen by Osino to provide advice on and accelerate the debt financing workstream. Leading independent financial advisor Terrafranca has a proven track record of securing funding for small-scale mining enterprises in Africa.
Pre-feasibility study for Twin Hills was published by Osino and was titled “Amended and Restated Pre-Feasibility Study of the Twin Hills Gold Project, Namibia, National Instrument 43-101 Technical Report.”
It was effective on September 6th, 2022, and signed on October 25th, 2022. The study stated 2.15 Moz in reserves (average Au grade of 1.04 g/t with a cutoff of 0.3 g/t) and described a 13-year open-pit mine life with an average annual gold output rate of 169 koz/annum at all-in sustaining costs of US$930/oz in the first 10 years of operation.
The company has been able to expedite the project finance process due to the pre-feasibility study’s thoroughness and the project’s resultant economic resilience. The definitive feasibility study is anticipated to be finished in the middle of 2023.
Source: https://osinoresources.com/