PERTH (miningweekly.com) – Canadian firm Semafo on Thursday launched an official takeover bid for ASX-listed gold developer Orbis Gold, offering shareholders 65c a share in cash.
The company had previously notified the market of its intention to launch a takeover bid for Orbis, priced at between 62c and 65c a share. Following Orbis’ release of an updated scoping study into its flagship Natougou project earlier this week, the Semafo offer has come in at the higher end of the spectrum.
The Natougou project, in Burkina Faso, was now expected to deliver revenues of about $1.9-billion and was estimated to have a net present value of $533-million. Natougou was expected to deliver gold sales of some 1.5-million ounces over a mine life of 6.7 years.
Semafo’s takeover offer was conditional upon Orbis not proceeding with a previously announced $20-million capital raising and partnership with Greenstone Resources, under which Greenstone would gain a 17% interest in Orbis.
The TSX-listed gold miner pointed out that its cash bid was materially greater than the 42c a share being offered by Greenstone, and represented a substantial premium to Orbis’ share price, before being approached for takeover.
The takeover offer was also subject to a minimum 50.1% acceptance condition.
Orbis told shareholders on Thursday that the company and its advisers were in active discussions with several third-party companies regarding value-enhancing alternatives to the Semafo offer, and advised shareholders not to take any action around the offer.