HomeMarket NewsMiningPerseus Rejects Silvercorp's Takeover Bid for OreCorp

Perseus Rejects Silvercorp’s Takeover Bid for OreCorp

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An unexpected twist rattled the financial market last week as Silvercorp raised its cash offer for OreCorp by A$20 million ($13 million). This move followed swirling speculations hinting at growing unease among influential shareholders of OreCorp regarding the proposed acquisition.

Silvercorp’s revised bid now places OreCorp at a value of A$260 million ($170 million), offering an increased A$0.543 per share, which represents a 12% premium on last Tuesday’s closing price.

OreCorp is confident in Silvercorp’s financial capacity to support the development and exploration of the Nyanzaga gold project in Tanzania. The recent definitive feasibility study for the project, unveiled in August 2022, forecasts a potential production of 242,000 ounces of gold per annum during the initial 10 years of operation, with a peak at 295,000 ounces per year, and a minimum mine life of 10.7 years.

As the December 8, 2023, vote on the Silvercorp scheme approaches, Perseus has announced its intention to oppose the takeover bid, further fueling the unexpected turns in this corporate drama.

By 1:24 p.m. EDT, Perseus witnessed a 2% surge in its shares. The company currently commands a market capitalization of A$2.37 billion ($1.56 billion). Meanwhile, OreCorp saw a 10.4% decline, with the company holding a market capitalization of A$249 million ($164 million).

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