Canada’s Silvercorp Metals (TSX, NYSE: SVM) has officially stepped aside from the race to control Africa-focused gold explorer OreCorp (ASX: ORR), accepting to sell its 15% stake in the company to rival Perseus Mining (ASX, TSX: PRU).

The Vancouver-based miner, which has been a rival bidder for OreCorp for months, has agreed to sell its 15.6% shareholding in the Australian junior to Perseus. This takes Perseus’ interest in OreCorp to just under 75%.

Silvercorp and Perseus vied for months to acquire the OreCorp, which saw Perseus raise its cash offer in March 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.

OreCorp gave Silvercorp five days to increase its bid, but the period expired on March 26, resulting in the Australian junior encouraging shareholders to accept Perseus’ proposal. This offer remains unconditional and open until April 19, unless it is extended.

OreCorp noted on Wednesday that it’s already actively working with Perseus to transition its board and management team in respect of the takeover.

Central to the battle for OreCorp was the company’s Nyanzaga gold project in northwest Tanzania, which 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 Nyanzaga an after-tax net present value of $618 million at a 5% discount rate and an internal rate of return of 25%.

Perseus had been looking for additional gold assets in Africa to grow its portfolio. This prompted it to throw its hat in the ring, approaching OreCorp with an off-market offer.

Currently, Perseus operates three gold mines in Africa: Edikan in Ghana, and Sissingu and Yaour in Côte d’Ivoire.

Source: MINING.COM – Read More