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Perseus extends OreCorp takeover bid to April

Australia’s Perseus Mining (ASX, TSX: PRU) does not give up on its plans to acquire African gold developer OreCorp (ASX: ORR), releasing on Friday a second supplementary bidder’s statement that extends its off-market offer to April 19.

Perseus is offering A$0.55 cash per each share of OreCorp it does not already own, which values the target company at A$258 million ($172m). The bid represents a 4% premium over rival’s Silvercorp Metals (TSX, NYSE: SVM). 

Silvercorp approached OreCorp in August last year, hoping to obtain the Nyanzaga gold project in Tanzania, located near Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine and AngloGold Ashanti’s (JSE: ANG) (NYSE:AU) Geita mine.

Both bidders, who have been battling for OreCorp since, claim Tanzanian authorities are ready to approve their offers.

The Nyanzaga mine would cost $474 million to build and is slated to produce 242,000 ounces gold per year over its first decade, according to a feasibility study issued in August 2022.

Perseus has three operating mines in Ghana and Côte d’Ivoire producing gold at a rate of more than 535,000 ounces per year.

Vancouver-based Silvercorp has two producing precious metals mines in China and it has been looking to diversified its portfolio as of late. Its bid for OreCorp closes on March 22 unless extended. 

Source: MINING.COM – Read More