Perseus Mining (ASX,TSX: PRU) is far from giving up on its intended acquisition of OreCorp (ASX: ORR), saying on Monday it was confident of receiving unconditional approval from the Tanzanian Fair Competition Commission (FCC) regarding its off-market takeover bid for the African gold developer.
In a first supplementary bidder’s statement issued today, Perseus said that the FCC had issued it with a notice of complete finding. This confirms the FCC’s acceptance of Perseus’ merger clearance request and paves the way for the watchdog to issue a resolution, expected before the end of the month.
As Perseus Mining does not currently own any operations in Tanzania, it does not expect any competition concerns or issues with its merger clearance request.
Perseus’s move complicates OreCorp’s scrip and cash deal with SilverCorp as its bid represents a 4% premium.
OreCorp’s independent expert report prepared by BDO earlier this month put a A$53.4 cents value on SilverCorp’s offer, compared to Perseus’ A$55 cents all-cash bid that equates to a A$258 million price tag. Perseus on Monday called into question the basis for BDO’s recommendation of SilverCorp’s proposal.
Both suitors have their eyes set on OreCorp’s Nyanzaga project, which would cost $474 million to build and it is set to produce 242,000 ounces of gold per year over its first decade.
The project, which could reach annual output of 295,000 gold ounces, is about 30 km northeast of Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine. It is also 60 km east of AngloGold Ashanti‘s (NYSE:AU) Geita gold mine.
Nyanzaga has an after-tax net present value of $618 million at a 5% discount rate and an internal rate of return of 25% based on a $1,750 per ounce gold price, according to a definitive feasibility study issued in August 2022.
The government of Tanzania holds a 16% non-dilutable free carried interest in the project.
Source: MINING.COM – Read More