AN AUSTRALIAN COMPANY, Perseus
Mining Limited, Is On The Verge Of Securing The Acquisition Of Tanzania’s
Nyanzaga Gold Project From Orecorp Following The Expiry Of A Rival Bid From Canadian
Company Silvercorp Metals.
According To Orecorp, The
Canadian Mining Firm Silvercorp Did Not Satisfy The 50.1 Percent Minimum
Acceptance Condition Of Its Off-Market Takeover Bid Before The Close Of The
Offer On March 22, 2024.
Both Perseus And Silvercorp
Metals Have Been Engaged In A Bidding War For Orecorp’s Acquisition, With
Interests In Gaining Control Of Orecorp’s Nyanzaga Gold Project In Tanzania.
Perseus And Silvercorp Have
Vied For Months To Acquire The Africa-Focused Gold Explorer, Which Last Week
Saw Perseus Raise Its Cash Offer To 0.575 Australian Dollars A Share.
The Figure, Representing
A 4.5 Percent Increase Over Its Previous Bid Of 0.55 Australian Dollars, Had
Been Originally Turned Down By Orecorp Earlier This Year.
However, Before Perseus’s
Revised Offer, Silvercorp Metals Had Already Entered Into A Bid Implementation
Deed With Orecorp.
Under This Agreement, Silvercorp
Proposed Acquiring All Orecorp Shares For A Combination Of 0.19 Australian Dollars
In Cash And 0.0967 Silvercorp Shares Per Orecorp Share.
In An Announcement Issued
On March 25, 2024, Per The Terms Of The Bid Implementation Deed Between Orecorp
And Silvercorp Dated December 27, 2023 (BID), Orecorp Has Provided Silvercorp With
Notice Of Termination Of The Bid.
“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 Metals Said In Their Issued
Statement.
In 2021, Orecorp, The
Target Of The Acquisition, Was Granted A Special Mining License To Develop The Nyanzaga
Gold Project In The Lake Victoria Goldfields Of North-West Tanzania, A License
For Which The Company Had Applied In 2017.
The Nyanzaga Project
Would Necessitate A Pre-Production Capital Cost Of $474 Million, Covering
Expenses Such As Underground Development, Open Pit Pre-Strip, Plant, And
Related Project Infrastructure.
The Nyanzaga Project Is
An Advanced Development Project In The Archaean Greenstones Of The Lake
Victoria Goldfields In Northwest Tanzania.