Dundee's Decision on Osino Resources

Shares of Dundee Precious Metals surged on Tuesday morning following the company's announcement that it will not be making another offer with a higher bid for Osino Resources in response to a superior offer from a foreign-based company.

Market Reaction

Shares were trading over 10% higher at 9.10 Canadian dollars ($6.75) in light of the news.

Better Offer Received

Dundee, a Canadian gold miner, revealed that another company has presented a binding proposal to acquire Osino at a price of C$1.90 Canadian dollars per share in cash. This proposal was deemed superior by Osino, compared to Dundee's initial offer, which had an implied value of C$1.55 per share.

Decisive Move

Despite its earlier agreement to acquire Osino in mid-December, Dundee has decided not to modify its offer. However, the company stated that in the event Osino terminates their agreement to accept the new bid, a termination fee of C$10 million will be owed to Dundee.

This strategic decision by Dundee comes after significant market reaction when the initial acquisition agreement was announced, which led to a notable drop in share prices. Dundee had justified the move by highlighting the addition of a long-life open-pit gold project and exploration sites in Namibia to its portfolio.