Canadian gold miner with lithium asset OKs sale to Chinese firm
Ottawa's policy of preventing Chinese companies from investing in Canadian-listed firms may be put to the test after Vancouver-based Osino Resources Corp. agreed to be bought by Yintai Gold Co. Ltd. for $368 million.
Yintai's main interest in Osino seems to be the latter's gold project in central Namibia. The Twin Hills Gold project is expected to have a 13-year mine life with an average gold production of more than 169,000 ounces per annum, according to a third-party study. The project is expected to generate about US$1.5 billion with a relatively low cost of about $365 million to build the mine.
Yintai president Xingong Ou in a press release said Twin Hills represents a unique opportunity for the company to add a “high-quality gold development asset” to its portfolio.
However, Osino's Omaruru Lithium project, still in its early stages, lies just 20 kilometres away from the Twin Hills project. Osino in 2022 inked an agreement with Australia's Prospect Resources Ltd. to explore the property for lithium. Prospect can own about 51 per cent of the project if it meets certain conditions.
In November 2022, Canada ordered three Chinese companies to divest their shares from three junior Canadian lithium miners. This was after Ottawa released a policy that made it more difficult for foreign businesses either owned or influenced by “non-likeminded” nations to own or invest in Canadian miners dealing with metals such as lithium, nickel and copper.
Industry Minister FrançoisPhilippe Champagne reaffirmed this stance and said he would not compromise on national security.
Canada considers 31 minerals, including lithium and copper, as critical due to the key roles they
are expected to play in the gradual transition from energy produced from fossil fuels. The restrictions were imposed to ensure Canada lessens its dependence on China for these raw materials.