Australia’s Perseus Mining (ASX, TSX: PRU) is not giving up on its plans to acquire African gold developer OreCorp (ASX: ORR), releasing on Friday a second supplementary bidder’s statement that extends its off-market offer to April 19.
Perseus is offering A$0.55 cash per each share of OreCorp it does not already own, which values the target company at A$258 million ($172m). The bid represents a 4% premium over its rival Silvercorp Metals (TSX, NYSE: SVM).
Silvercorp approached OreCorp in August last year, hoping to obtain the Nyanzaga gold project in Tanzania, located near Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine and AngloGold Ashanti’s (JSE: ANG) (NYSE:AU) Geita mine.
Both bidders, who have been battling for OreCorp since, claim Tanzanian authorities are ready to approve their offers.
The Nyanzaga mine would cost $474 million to build and is slated to produce 242,000 ounces gold per year over its first decade, according to a feasibility study issued in August 2022.
Perseus has three operating mines in Ghana and Côte d’Ivoire, producing gold at a rate of more than 535,000 ounces per year.
Vancouver-based Silvercorp has two producing precious metals mines in China and has been looking to diversify its portfolio. Its bid for OreCorp closes on March 22 unless extended.
