Perseus Mining (ASX:PRU) increased its shareholding in OreCorp (ASX:ORR) to 19.9% a mere hours after acquiring an initial 15.03% stake this morning (27 November 2023).
While the increase to a blocking stake came just 2.5 hours after announcing it acquired 15.03%, Perseus has made it clear it’s not in active merger or takeover discussions and it does not intend to submit a change of control transaction in competition to the current scheme that Silvercorp Metals (TSX/NYSE:SVM) has offered to OreCorp shareholders.
Silvercorp on 23 November announced it had entered into an amendment binding scheme implementation deed with OreCorp, whereby Silvercorp agreed to acquire all fully paid ordinary shares of the company not already held by Silvercorp or its associates.
At the date of Silvercorp’s 23 November announcement, it held 15.40% of the fully paid ordinary shares of OreCorp.
Silvercorp at the time reported the OreCorp board unanimously approved the scheme, as revised, and recommended all OreCorp shareholders vote in favour at a meeting set for 8 December 2023.
Perseus today says it intends to vote against the Silvercorp scheme at the OreCorp scheme meeting on 8 December.
Perseus, which has a market capitalisation of $2.41 billion, adds that it welcomes the opportunity to engage with OreCorp to determine an optimal and expedited pathway forward for the development of its Nyanzaga project.
Executive Chairman Jeff Quartermaine says the company continues to assess and deploy its reserves of cash, bullion and undrawn debt facilities totalling US$900 million to pursue opportunities that complement its existing asset portfolio and organic growth program.
“Acquiring the (initial) 15.03% interest in OreCorp via this share acquisition is a strategic investment for Perseus. It provides an investment in an attractive African gold project located in a jurisdiction that has a long and successful history of gold mining.
Perseus has the ability, should the opportunity arise, to deploy its engineering, development and operating expertise and balance sheet to meaningfully contribute to the successful development and operation of this project.”
OreCorp is an ASX-listed mineral developer focused on its Nyanzaga Gold Project in northwest Tanzania. The project has a reported probable ore reserve of 40.08 million tonnes @ 2.02 grams per tonne (g/t) gold for 2.60 million ounces of gold.
Perseus Mining is a dual-listed African-focused gold company that currently operates 3 gold mines, namely the Edikan, Sissingué and Yaouré. Its TSX code is TSX:PRU.
As of 30 September 2023, the company had US$594 million cash and bullion at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: OreCorp
