East African skewing gold miner, Perseus has all but won control of OreCorp after the latter’s would be Canadian suitor, Silvercorp abandoned its share and cash proposal.
Silvercorp’s abandonment of its offer came after Perseus raised its cash offer to 57.5 cents a share and revealed it had won the support of two big OreCorp shareholders who between them own more than 15%.
The higher offer will cost Perseus around $270 million
In a statement to the ASX on Monday, OreCorp said its board "recommends that shareholders ACCEPT the amended Perseus proposal once it becomes capable of acceptance, in the absence of a superior proposal."
"As one or more of the defeating conditions of the Silvercorp Offer were not waived or satisfied by the Closing Time, the Silvercorp Offer has now lapsed and the acceptances
of OreCorp shareholders who accepted the Silvercorp Offer have become void,” OreCorp said on Monday.
"In accordance with the terms of the Bid Implementation Deed between OreCorp and Silvercorp dated 27 December 2023 (BID), OreCorp has provided Silvercorp with notice
of termination of the BID. 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.
OreCorp said directors, holding approximately 3.9% of the OreCorp Shares intend to accept the amended Perseus proposal.
The attraction of OreCorp for Perseus is that it will add another African gold mining proposal to its portfolio. OreCorp’s key project is the Nyanzaga Gold Project in northwest Tanzania.
Perseus operates three gold mines in Africa: Edikan in Ghana, and Sissingué and Yaouré in Côte d'Ivoire.
