ASX-listed Perseus Mining has announced its intention to make an off-market takeover offer for all of the issued shares in ASX-listed OreCorp that it does not already own for a cash consideration of A$0.55 per OreCorp share.

Full details of Perseus’ offer will be contained in a bidder’s statement that is expected to be lodged with the Australian Securities and Investments Commission, provided to OreCorp and released to the ASX prior to the end of this month.

This offer to OreCorp’s shareholders is valued at a 4% premium to the currently implied value of a takeover offer made by Silvercorp Metals, as announced to the ASX on December 27 and as amended on January 16.

Perseus says the conditions of its offer are materially the same as those of the Silvercorp takeover, including being conditional on acquiring 50.1% of OreCorp’s ordinary shares.

However, Perseus’ offer, unlike the Silvercorp takeover, provides OreCorp shareholders the certainty of receiving a cash payment equal to 100% of the stated value of the consideration for their shares, the company points out.

OreCorp’s Shareholders Who Wish To Accept Perseus’ Offer

OreCorp’s shareholders who wish to accept Perseus’ offer, once made, should not accept the Silvercorp takeover as they would then be unable to accept Perseus’ offer, the company emphasises.

It adds that OreCorp shareholders do not need to take any action at this time but should be guided by Perseus’ bidder’s statement, which will be provided to OreCorp shareholders before the end of the month.

“Perseus has put this new offer directly to OreCorp shareholders on the basis that it represents a compelling opportunity for the shareholders of both OreCorp and Perseus. The acquisition of OreCorp’s shares aligns with Perseus’ growth strategy of building an asset portfolio comprised of geopolitically diverse, high-quality gold assets located on the African continent. At the same time, this offer is demonstrably superior to the Silvercorp takeover [offer] in terms of price, based on recent Silvercorp trading, and in terms of consideration certainty, being an all cash.”
Jeff Quartermaine

“In other words, it would ensure that OreCorp’s shareholders receive full value and certainty for their shares in OreCorp,” posits Perseus executive chairperson and CEO Jeff Quartermaine.

“Perseus has the financial capacity, technical expertise and in-country relationships required to optimally develop OreCorp’s Nyanzaga gold project and bring the gold mine into production. This development would enable Perseus to continue to deliver on its corporate mission of creating material benefits for all of our stakeholders, including the government and people of Tanzania.

“If the acquisition is completed, Perseus will have three operating mines producing gold at a rate of over 535 000 oz/y and 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.”
Jeff Quartermaine

Perseus currently operates three gold mines – Edikan, in Ghana, and Sissingué and Yaouré, in Côte d’Ivoire.