By Guardian Reporter ,, News Agency , The Guardian
AN Australian company Persus Mining has finally won the bid to secure the
acquisition of Tanzania’s based Nyanzaga gold project, which was formally controlled by Orecorp, following months of rivalry with Canadian Silvercorp Metals.The Nyanzaga gold project is an advanced development project in the Archaean Greenstones of the Lake Victoria Goldfields of northwest Tanzania.
The project, which the government of Tanzania holds a 16 percent free-carried interest in Sotta Mining Corporation Limited, comprises the Special Mining Licence (SML), covering 23.4km2 and encompasses the Nyanzaga and Kilimani deposits and other exploration prospects.
Reports have it that the Canada’s Silvercorp Metals officially stepped aside from the race to control Africa-focused gold explorer OreCorp, after agreeing to sell its 15 percent stake in the company to rival Perseus Mining.
Persus Metals said in a statement issued on Wednesday that Silvercorp’s acceptance was for a total of 73,889,007 OreCorp Shares (representing 15.61 percent of OreCorp Shares on issue).
“As at 9 April 2024, Perseus has a relevant interest in 354,982,123 OreCorp Shares, which is representing 74.98 percent of OreCorp Shares on issue,” the statement.
“Perseus wants to reiterate that the offer is unconditional; and best and final in the absence of a competing proposal”.
However, the statement noted that the Perseus offer is open until 19th April 2024 (unless extended).
Silvercorp and Perseus have been vying for months to acquire the OreCorp, which saw Perseus raise its cash offer in March to A$0.575 a share.
The figure, representing 4.5 percent increase over its previous bid of A$0.55, had been originally turned down by OreCorp earlier this year.
Formally, OreCorp gave Silvercorp five days to increase its bid, but the period expired on March 26, resulting in the company encouraging shareholders to accept Perseus’ proposal.
In a statement, OreCorp said on Wednesday this week that it is already actively working with Perseus Mining Limited to transition its board and management team in respect of the takeover.
Yesterday, OreCorp Limited announced the changes to its board and management, which have been made following Perseus Mining Limited declaring its off-market takeover bid unconditional last week.
Messrs Matthew Yates (Executive Chairman), Henk Diedrichs (CEO & Managing Director), Alastair Morrison (Non-Executive Director) and Michael Davis (Non-Executive Director) have therefore resigned from their positions on the board.
Yates and Diederichs have agreed to remain available to provide consultancy services to the company for a transitional period.
Perseus says it appreciates the collaborative relationship it has developed with OreCorp and intends to appoint representatives to the OreCorp board and management team including Chairperson Jeff Quartermaine and CEO and MD Lee-Anne de Bruin.
The statement said Quartermaine and de Bruin will not be remunerated by the company for their respective roles in addition to their remuneration received from Perseus.
“We are pleased with the positive response from OreCorp shareholders and to be able to declare the offer unconditional and best and final. 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,” Perseus new chairperson and CEO Jeff Quartermaine was quoted as saying on Wednesday.
He said 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.
A definitive feasibility study conducted in 2022, gave Nyanzaga an after-tax net present value of $618 million at a 5 percent discount rate and an internal rate of return of 25 percent.
Perseus had been looking for additional gold assets in Africa to grow its portfolio. This prompted it to throw its hat in the ring, approaching OreCorp with an off-market offer.
Currently, Perseus operates three gold mines in Africa: Edikan in Ghana, and Sissingu and Yaour in Côte d’Ivoire.
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