Perseus Mining Limited intends to make an off-market takeover offer for all of the issued shares in OreCorp Limited that it does not already own for cash consideration of 55 cents per OreCorp Share, on Sunday.
According to this offer, OreCorp’s shareholders are valued at a 4% premium to the initially proposed value of a takeover offer made by Silvercorp Metals for about 53 cents per share, and the bid will be funded from Perseus’s existing cash and bullion reserves which summed to $594 million.
Perseus intends to submit its requisite approval forms to relevant Tanzanian government agencies for this deal and has also recently met with the government. Based on these discussions it does not foresee any challenges in obtaining the requisite approvals in a timely manner.
Jeff Quartermaine, CEO of Perseus stated, “If the acquisition is completed, Perseus will have three operating mines producing gold at a rate of over 535,000 ounces per year in FY2023 and two high-quality development projects that, when brought on stream, as intended, will enable Perseus to maintain or exceed that targeted production level well into the next decade.”
The company said this offer is also subject to a 50.1% minimum acceptance condition and other customary conditions that are no less favourable than the Silvercorp takeover. Perseus reserves the right to waive some or all of these conditions.
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