OreCorp to accept Perseus takeover

Silvercorp’s proposed takeover bid for OreCorp has now lapsed, clearing the way for Perseus Mining to acquire the gold explorer.

OreCorp had issued Silvercorp a five-day period in which to boost its $276 million offer for the company, which has now ended.

Any OreCorp shareholders’ acceptances of the Silvercorp offer have now been voided.

At the time the five-day period was set, OreCorp announced it had received an increased offer from Perseus to $0.575 per OreCorp share.

As no other bid has since emerged, OreCorp is now encouraging shareholders to accept Perseus’ proposal.

“The OreCorp board now unanimously recommends that OreCorp shareholders accept the amended proposal once it is capable of acceptance, in the absence of a superior proposal,” OreCorp said in a statement.

“The OreCorp Board notes that no superior proposal has so far emerged.

“Notwithstanding termination, Silvercorp will remain entitled to payment of a break fee of approximately $2.8 million in certain circumstances, as set out in the bid.”

Silvercorp’s mothballed bid is the final act in a tug-of-war between the companies over OreCorp, which holds the key to a multi-million-ounce gold project in north-west Tanzania.

In 2021, OreCorp was awarded a special mining license to develop the Nyanzaga gold project in the Lake Victoria Goldfields of north-west Tanzania, for which the company had applied in 2017.

The SML was granted to new joint venture company, Sotta Mining Corporation, for an initial term of 15 years.

OreCorp holds an 84 per cent interest in Sotta through its subsidiary, Nyanzaga Mining Company.

The Government of Tanzania holds the remaining 16 per cent stake as free carried interest.

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