Perseus Mining has confirmed the off-market takeover bid it made for all the current and soon-to-be issued ordinary shares in OreCorp is unconditional and best and final.
Silvercorp Metals’ proposed takeover bid for OreCorp lapsed in late March, clearing the way for Perseus to acquire the gold explorer for $276 million.
“We are pleased with the positive response from OreCorp shareholders and to be able to declare the offer unconditional and best and final,” Perseus chairman and chief executive officer (CEO) Jeff Quartermaine said.
“The offer provides compelling benefits and value to OreCorp shareholders, as well as the opportunity for OreCorp shareholders to realise certain and expedited value for their OreCorp shareholdings.”
As of April 9, Perseus holds a relevant interest in almost 355 million OreCorp shares, which represents 74.98 per cent of OreCorp shares on issue.
Perseus’ offer will remain open until April 19, unless the deadline is extended. OreCorp shareholders have been urged to accept the offer.
To aid the transition, OreCorp is working with Perseus to transition its board and management team to Perseus.
Numerous OreCorp executives have resigned from their positions. These include executive chairman Messrs Matthew Yates, managing director and CEO Henk Diedrichs, and non-executive directors Alastair Morrison and Michael Davis.
Yates and Diederichs have agreed to remain available to provide consultancy services to the company during the transitional period.
OreCorp has appointed two Perseus nominees to its board. If elected, Quartermaine will serve as chairman of the board and Lee-Anne De Bruin will be managing director and CEO of the company. De Bruin is currently Perseus’ chief financial officer.
Once these changes are implemented, most of the directors on the OreCorp board will be Perseus’ nominees.
Quartermaine said Perseus is preparing to visit Tanzania, which is where OreCorp’s Nyanzaga gold project is located, to strengthen key relationships.
“Senior executives from Perseus are scheduled to visit Tanzania in the very near future to continue the process of building relationships in country with key government and industry stakeholders as well as existing employees and associates of OreCorp and to prepare the way for the commencement of the development of the Nyanzaga gold project,” Quartermaine said.
The Nyanzaga definitive feasibility study completed in 2022 found that the project will be able produce an average of 250,000 ounces (oz) per annum over its first eight years of production, along with an average gold production of 234,000oz over a 10.7 life of mine.