Osino Resources Consolidates Land Holdings Contiguous to Navachab Gold Mine, Central Namibia
VANCOUVER, Feb. 21, 2019 - Osino Resources Corp. (TSXV: OSI) ("Osino” or the “Company”), through its subsidiaries, Osino Gold Exploration (Pty) Ltd. ("Osino Gold") and Osino Otavi Holdings (Pty) Ltd (“Osino Otavi”), is pleased to announce the consolidation of land holdings on the Karibib Gold Project (“the Project”) through the acquisition of two Exclusive Prospecting Licenses, EPL5880 and EPL6167 (the "Licenses" or “EPLs”) from Namibian citizens on an arm's length basis with no finders fees (the "Vendors"). Another two such licenses, EPL5897 and EPL5563, are also being acquired with no finder's fees from arm's length Namibian citizens.
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The EPLs comprise 696km2 of prospective ground along and adjacent to the producing Navachab Gold Mine and the Company’s Karibib Gold Trend. In addition to the extension of the available strike of the Karibib Gold Trend, EPL5880 covers a large geological dome structure (the ‘Kranzberg Dome’). This dome structure has many similarities with the Karibib and Usakos domes, which are interpreted to have played an important part in concentrating the gold mineralizing fluids which formed the Navachab gold deposit and related satellite deposits.
Acquisition of EPL5880 and EPL6167
EPL5880 is immediately to the northwest of the producing Navachab Gold Mine and joins Osino’s western-most license with the southwestern-most point along the Karibib Gold Trend, which Osino has explored to date (Figure 1). This EPL covers an additional 20km of strike length of the Karibib Gold Trend along which the Company has discovered significant gold mineralization at the Twin Hills Prospect (refer to news release dated August 8, 2018 and news release dated December 5, 2018) and bedrock gold mineralization directly beneath gold in calcrete anomalism on the Twin Hills Extension Target (refer to news release dated January 17, 2019).
The rights to EPL5880 were acquired through a transfer agreement dated January 31, 2019 with an arm's length Namibian private company (owned and controlled by an arm's length Namibian citizen) which requires Osino to reimburse previous exploration and holding costs by way of non-material cash payment and issuance of 100,000 common share purchase warrants exercisable at a price of $0.30 per share (the "Warrants") to the previous owner of the license, which will be subject to a voluntary two year escrow. The transaction is subject to applicable securities laws and regulatory approvals. Preliminary reconnaissance work will commence in the meantime.
The Company has also recently acquired EPL6167 (15.8km2) (the “First Agreement”), which covers a small, but significant 1.5km of strike of the Karibib Gold Trend, and more specifically part of the gold in calcrete anomaly forming part of the Twin Hills Extension Target. EPL6167 was acquired for a small non-material cash payment and issuance of 108,853 of common shares in Osino to the previous license holder. Osino agreed to pay the Vendors 108,853 common shares (the "First Payment Shares") which is equivalent to N$300,000 (CAD$28,302). Osino Gold has also committed to spending a minimum of N$250,000 (CAD$23,585) directly on exploration within the first 12 months under operation by Osino Gold. The initial letter agreement was signed on December 14, 2018 and the closing price of Osino's shares on the TSX Venture Exchange (the "TSXV") on that date was $0.26 per share, which was the agreed pricing for the First Payment Shares.
Dave Underwood, Osino’s VP Exploration commented: “With the completion of these license acquisitions, Osino continues to grow and explore priority parts of the emerging Damara Gold Province and consolidate our land holdings in these areas. Osino now holds majority ownership or has access (through earn-in agreements) to approximately 6,700km2 in the prospective Central and Northern Zones of the Damara Belt in Namibia where we have already made a number of significant new discoveries.”
Figure 1: Consolidation of License Holdings along Karibib Gold Trend
http://www.globenewswire.com/NewsRoom/AttachmentNg/c2070edb-48d3-4aec-8a59-962c765b0c1f
The expanded ground position strengthens the Company’s land position with an additional 696km2 of prospective geology along and adjacent to the Karibib Gold Trend. Osino now controls over 70km of strike of the Karibib Fault Zone along which the Karibib Gold Trend occurs. Approximately 45km of the Karibib Gold Trend has been tested to varying degrees by Osino to date; including the discovery of the Twin Hills Gold Prospect, gold mineralization below gold in calcrete anomalism on the Twin Hills Extension Target, and preliminary Rotary Air Blast (RAB) drilling in Q4 2018 (results expected in February 2019).
Acquisition of Other Licenses in Namibia
In addition to the new license acquisitions in the Karibib Gold Project area, Osino has also finalized the restructuring of the earn-in agreement dated August 22, 2018 with an arm's length Namibian citizen and the transfer of the key license within its Otjikoto East Project to a Namibian subsidiary of the Company (the “Second Agreement”). Osino has fulfilled its earn-in commitments on EPL5897 and the Company has now obtained regulatory approval for the transfer of the license to Osino’s 80%-owned Namibian subsidiary. EPL5897 is adjacent to Otjikoto Gold Mine (B2Gold Corp.) and hosts a number of new Osino exploration targets, including the Fairview Gold Target (refer to news release dated October 2, 2018).
The Second Agreement earn-in for EPL5897 was restructured in order to facilitate the acquisition and transfer of an additional license (EPL5563), which is located within Osino’s Otjiwarongo Regional Project area.
Under the terms of the Second Agreement, Osino agreed to pay the Vendors a purchase price to include EPL5563 in addition to EPL5897, through the issuance of an aggregate of 666,667 common shares (the "Second Payment Shares"), which is equivalent to approximately CAD $200,000 and at the agreed upon share price of $0.30 per share.
The First Payment Shares and Second Payment Shares issued at closing will have the customary four-month hold period and will be subject to a voluntary 3-year escrow agreement to be entered into between Osino, Osino's transfer agent, Computershare Trust Company of Canada and the Vendors. The Warrants and common shares issuable upon exercise thereof will also be subject to the customary four-month hold period and will be subject to a voluntary 2-year escrow agreement.
The transfer of both licenses (EPL5897 and EPL5563) were granted by the Ministry of Mines and Energy in December 2018, and Osino will issue common shares to the previous license holders for an equivalent value of C$200,000.
Qualified Person
David Underwood, a Chartered Professional Geologist (SACNASP) and a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects for the Osino Projects has reviewed, verified and approved the contents of this news release.
About Osino Resources
Osino Resources Corp. (TSXV: OSI) is a Canadian company, focused on the acquisition and development of gold projects in Namibia. Osino’s Namibian interests comprise 20 exclusive exploration licenses located within the central and northern zones of Namibia’s prospective Damara belt, mostly in proximity to and along strike of the producing Navachab and Otjikoto Gold Mines. Osino 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 approximately 130 km north-west of Namibia’s capital city Windhoek. 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.
Further details are available on the Company's website at https://osinoresources.com/
CONTACT INFORMATION
Osino Resources Corp.
Heye Daun: CEO
Tel: +27 (21) 418 2525
hdaun@osinoresources.com
Julia Becker: Investor Relations Manager
Tel: +1 (604) 785 0850
jbecker@osinoresources.com
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.