Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has increased the offer consideration under its existing off-market takeover bid for fellow African gold play OreCorp Limited to A$0.575 per OreCorp share from the previous $0.55.
OreCorp has received the conditional offer subject to OreCorp’s board recommending that shareholders accept Perseus’s offer in the absence of a superior proposal.
As of March 19, Perseus held 22.01% of OreCorp.
Intention statements
In a statement, OreCorp said that it had received statements of intent from major shareholders Tim Goyder and Nick Giorgetta who in aggregate hold approximately 15.6% of OreCorp shares indicating that they intended to accept the amended proposal.
Each has stated that they intend to accept the amended offer in respect of their shares by the end of the second trading day after the later of:
Would complement assets
OreCorp is a Western Australian-based mining development company listed on the ASX under the code ‘ORR’ and its key project is the Nyanzaga Gold Project in northwest Tanzania for which a Special Mining Licence was granted in December 2021 with results of a definitive feasibility study released in August 2022.
Perseus, which has three operating gold mines in West Africa and a development project in Sudan, believes the Nyanzaga Project would complement its existing assets.
Silvercorp notified
OreCorp advises that in accordance with the matching rights process set out in clause 6.5 of the Bid Implementation Deed (BID) between OreCorp and Silvercorp Metals Inc (TSX:SVM, AMEX:SVM). dated December 27, 2023, it has notified Silvercorp of the terms of the amended proposal.
It has also advised Silvercorp that it has determined that the amended proposal is a superior proposal.
Under the BID, Silvercorp now has a five business day period, expiring on March 27, 2024, to provide OreCorp with an increase in its offer consideration or other alteration of its bid terms in response to the amended proposal.
If, following expiration of this matching rights process, Silvercorp has not provided a counterproposal that would produce an equivalent or superior outcome for its shareholders, the OreCorp board intends on recommending that shareholders accept the amended proposal in the absence of a superior proposal.
The amended proposal would be capable of acceptance following the OreCorp board recommendation.