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Perseus Mining’s Confident Bid for OreCorp Takeover Perseus Mining’s Confident Bid to Acquire OreCorp

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Perseus Mining, with no operations in Tanzania, is confident about its merger clearance request for the OreCorp takeover.

The move by Perseus adds complexity to OreCorp’s scrip and cash deal with SilverCorp, as Perseus’s bid holds a 4% premium.

OreCorp’s independent expert report, prepared by BDO, estimated a value of A$53.4 cents for SilverCorp’s offer, in contrast to Perseus’ A$55 cents all-cash bid amounting to a A$258 million price tag. Perseus has raised doubts about BDO’s recommendation of SilverCorp’s proposal.

Both Perseus and SilverCorp are eyeing OreCorp’s Nyanzaga project, projected to cost $474 million to build and produce 242,000 ounces of gold annually over its first decade.

The Nyanzaga project, estimated to reach an annual output of 295,000 gold ounces, is located approximately 30 km northeast of Barrick Gold’s Bulyanhulu mine and 60 km east of AngloGold Ashanti’s Geita gold mine.

According to a definitive feasibility study from August 2022, Nyanzaga holds an after-tax net present value of $618 million at a 5% discount rate and an internal rate of return of 25% based on a $1,750 per ounce gold price.

The government of Tanzania has a 16% non-dilutable free carried interest in the Nyanzaga project.

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