Canadian gold mining firm Osino Resources has signed a $15.2m deal to acquire the Ondundu gold exploration property in Namibia from B2Gold.

According to the agreed terms, Osino will purchase all of the issued and outstanding shares of Namibian company Razorback Gold Mining Company, which owns the Ondundu project.

Osino will pay $3.85m and issue $5m in common shares of Osino to B2Gold upon the closing of the deal.

B2Gold will receive a further $3.85m on the first business day after the six-month anniversary of the closing of the transaction.

Osino will make a final payment of $2.5m to B2Gold upon the completion of a project feasibility study and first production from the licence area.

The transaction awaits Namibian regulatory approvals.

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Osino president and CEO Heye Daun said: “We believe this is a highly accretive transaction for Osino, which provides significant additional scale, diversification and consolidation of Osino’s Namibian projects.

“We plan to build on the excellent exploration and resource development work which B2Gold completed over the last six years and to quickly advance the project to a compliant resource stage.

“Based on the project’s historical exploration and analysis, we believe the Ondundu Gold Project has the type of mineralisation with potential to host a significant open-pit gold resource possibly in the order of more than 1Moz of contained gold with the possibility for co-development with Osino’s Twin Hills Gold Project.”

Upon completion of the deal, B2Gold will become a strategic shareholder of Osino.

Covering 19,969ha, the Ondundu project is located within the Namibian exclusive prospecting licence 3195, which is 100% owned by Razorback.

The Ondundu project is hosted within the Northern Zone of the Neoproterozoic Damara Orogen in north-central Namibia.

Last year, B2Gold divested 100% of the issued and outstanding shares of Volta Resources (Cayman) to gold mining company West African Resources (WAF).