ASX-listed OreCorp has recommended to shareholders that they accept an amended offer made by ASX- and TSX-listed Perseus Mining to buy out all shares it does not own in the company for A$0.575 apiece.
This follows rival bidder TSX-listed Silvercorp not having amended its own offer of A$0.53 in cash and shares.
OreCorp confirms that no superior proposal has so far emerged, hence its recommendation to shareholders to accept the Perseus proposal once it becomes capable of acceptance.
OreCorp’s directors, who hold about 3.9% of the company’s shares, intend to accept the amended Perseus proposal.
The company provided Silvercorp with the opportunity to discuss and negotiate any equivalent or superior proposal to the terms of Perseus’ amended proposal, but Silvercorp opted not to provide a counterproposal.
Perseus wishes to gain control of OreCorp’s $618-million Nyanzaga project, in Tanzania, which would cost an estimated $474-million to build and produce about 242 000 oz/y of gold over the first decade of operation.
Perseus also aims to diversify its portfolio into Tanzania and further grow its asset base on the African continent.