PriceSensitive

Perseus opposes Silvercorp bid, secures 19.9% stake in OreCorp

Market News, Mining
TSX:PRU
27 November 2023 03:59 (EDT)

Perseus Mining Ltd. (TSX:PRU) has acquired a 19.9 per cent interest in OreCorp Ltd. (ASX:ORR) shares as an equity investment.

Perseus’ team said it is not in active discussions with OreCorp and does not intend to submit a change of control transaction in competition to the current offering from Silvercorp Metals Inc. (TSX:SVM) to OreCorp shareholders. Perseus intends to vote against the Silvercorp offering at an upcoming OreCorp meeting, which is scheduled for Dec. 8.

The company also acknowledged it would welcome the opportunity to discuss how to expedite OreCorp.’s Nyanzaga Gold Project.

“Perseus continues to assess and, where considered commercially appropriate, deploy its reserves of cash, bullion and undrawn debt facilities totalling approximately US$900 million, to pursue opportunities that complement its existing asset portfolio and our organic growth program,” Perseus’s executive chairman Jeff Quartermaine said in a news release. “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 a mineral development company whose key project is the Nyanzaga Gold Project, a pre-development project in northwest Tanzania with a reported Probable Ore Reserve of 40.08 metric tons (Mt) at 2.02 g/t gold for 2.60 million ounces of gold.

Perseus Mining Ltd. is an Australia-based gold producer, developer, and explorer that also conducts mineral exploration and evaluation activities in Africa.

Perseus Mining Ltd. last traded at C$1.55 per share and the stock is up 7.6 per cent over the past month.

Join the discussion: Find out what everybody’s saying about this stock on the Perseus Mining Bullboard and check out the rest of Stockhouse’s stock forums and message boards.

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.


Related News