SYDNEY - In a strategic move to expand its gold asset portfolio in Africa, Perseus Mining Limited has initiated an off-market takeover bid for OreCorp Limited. The offer, priced at A$0.55 per share, represents a 4% premium over the previous bid by Silvercorp Metals (NYSE:SVM) Inc. This all-cash proposal is a part of Perseus's growth strategy and hinges on the condition that Perseus acquires at least 50.1% of OreCorp's shares.
The funding for this acquisition comes directly from Perseus's cash reserves. Perseus's CEO, Jeff Quartermaine, has expressed confidence that the takeover would be a significant step towards meeting their production targets and enhancing operational capabilities. The addition of OreCorp's Nyanzaga project is expected to be a key asset in Perseus's portfolio.
Shareholders of OreCorp are provided with the certainty of a cash offer, which is often seen as an attractive proposition in takeover scenarios. Perseus has indicated that the bidder's statement, detailing the full offer, will be released to the public before the end of January, allowing shareholders to make an informed decision regarding the offer.
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