Perseus Mining has thrown its hat into the ring with an unsolicited takeover bid for OreCorp, which is currently in the midst of a $276 million acquisition by Silvercorp Metals.
The move is the latest in a tug-of-war between the companies over the gold explorer, which holds the key to a multi-million-ounce project in north-west Tanzania.
“This offer is demonstrably superior to the Silvercorp takeover in terms of price, based on recent Silvercorp trading, and in terms of consideration certainty, being an all cash,” Perseus executive chair and chief executive officer Jeff Quartermaine said.
“In other words, it would ensure that OreCorp’s shareholders receive full value and certainty for their shares in OreCorp.”
Perseus upped its Orecorp shareholding to 19.9 per cent in late November last year, at the time saying it was not vying for control but would vote against Silvercorp’s proposed takeover.
When the bid was set in motion in early August 2023, OreCorp unanimously recommended that its shareholders vote in favour of the Silvercorp acquisition, and have again upheld support for the takeover.
“The board has not changed their existing unanimous recommendation in favour of the current offer by Silvercorp,” the company said.
“OreCorp confirms that on Friday evening it received a confidential, conditional proposal from Perseus to make a takeover bid for OreCorp.
“The board of OreCorp carefully considered the proposal over the weekend with its advisers and notified Perseus that it was not considered to be a superior proposal for the purposes of the bid implementation deed with Silvercorp Metals dated 27 December 2023.”
Full details of the Perseus offer will be contained within a bidder’s statement expected to be lodged with ASIC, provided to OreCorp, and released to the ASX before the end of January.
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