ASX- and TSX-listed Perseus Mining has increased its off-market takeover offer price to acquire OreCorp to A$0.575 a share, provided that OreCorp recommends that shareholders accept the offer.
This compares with its initial A$0.55 all-cash bid, which equated to a consideration of A$258-million.
Compared with another takeover offer made by TSX-listed Silvercorp Metals to take over OreCorp for A$0.53 in cash and shares, OreCorp has confirmed that Perseus has made the superior offer and that, in the absence of SilverCorp amending its offer, will recommend that shareholders accept Perseus’ offer.
SilverCorp now has until March 27 to increase its offer price or provide another alteration of its bid terms.
OreCorp further confirms that it has received intention statements from its major shareholders, which collectively own 15.6% of OreCorp, to accept Perseus’ amended proposal in respect of all shares they own.
Both suitors are interested in gaining control of OreCorp’s $618-million Nyanzaga project, in Tanzania, which would cost $474-million to build and produce about 242 000 oz/y of gold over the first decade of operation.
The project is located 30 km northeast of Barrick Gold’s Bulyanhulu mine and 60 km east of AngloGold Ashanti’s Geita mine.
Through the acquisition of OreCorp, Perseus aims to diversify its portfolio into Tanzania and further grow its asset base on the African continent.
Perseus has three operating mines in Ghana and Côte d’Ivoire producing gold at a rate of more than 535 000 oz/y.
In turn, Silvercorp produces silver, gold, lead and zinc from various mines in China.
With its proposed takeover of OreCorp, Silvercorp aims to become a globally diversified precious metals producer, with enhanced trading liquidity and further upside from the Nyanzaga project.