Australia’s Perseus Mining (TSX: PRU; ASX: PRU) isn’t 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 Apr. 19.
Perseus is offering A55¢ per each share of OreCorp it does not already own, which values the target company at A$258 million (US$172 million). The cash bid represents a 4% premium over that of rival Silvercorp Metals (TSX: SVM; NYSE: SVM).
Silvercorp approached OreCorp last August, hoping to obtain the Nyanzaga gold project in Tanzania, located near Barrick Gold’s (TSX: ABX; NYSE: GOLD) Bulyanhulu mine and AngloGold Ashanti’s (NYSE: AU; JSE: ANG) Geita mine.
Both bidders, which have been battling for OreCorp since, claim Tanzanian authorities are ready to approve their offers.
The Nyanzaga mine would cost US$474 million to build and is slated to produce 242,000 ounces gold per year over its first decade, according to an August 2022 feasibility study.
Perseus has three operating mines in Ghana and Côte d’Ivoire producing gold at a rate of more than 535,000 oz. per year.
Vancouver-based Silvercorp has two producing precious metals mines in China and it has been looking to diversified its portfolio as of late. Its bid for OreCorp closes on Mar. 22 unless extended.
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