Australia’s OreCorp (ASX: ORR) is recommending shareholders to accept the off-market takeover offer from Perseus Mining (ASX, TSX: PRU) after a competing bid by Canadian rival Silvercorp Metals (TSX, NYSE: SVM) lapsed.
Perseus and Silvercorp have vied for months to the acquire the Africa-focused gold explorer, which last week saw Perseus raise its cash offer to A$0.575 a share. The figure, representing 4.5% increase over its previous bid of A$0.55, had been originally turned down by OreCorp earlier this year.
Perseus also revealed at the time it had won the support of two big OreCorp shareholders who between them owned more than 15% and extended the offer to April 19.
OreCorp had given Silvercorp five days to increase its bid, but this period has now expired.
As no other bid has since emerged, OreCorp is now encouraging shareholders to accept Perseus’ proposal.
“The OreCorp board now unanimously recommends that OreCorp shareholders accept the amended proposal once it is capable of acceptance, in the absence of a superior proposal,” it said in a statement.
OreCorp’s key project is the Nyanzaga Gold Project in northwest Tanzania and Perseus has been looking for additional gold assets in Africa to grow its portfolio.
Nyanzaga is located near Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine and AngloGold Ashanti’s (JSE: ANG) (NYSE:AU) Geita mine.
A 2022 definitive feasibility study gave the project an after-tax net present value of $618 million at a 5% discount rate and an internal rate of return of 25%.
Perseus operates three gold mines in Africa: Edikan in Ghana, and Sissingu and Yaour in Côte d’Ivoire.
Source: MINING.COM – Read More
