OreCorp backs Silvercorp takeover bid

OreCorp’s board has backed Canadian miner Silvercorp Metals’ takeover offer, sticking to its recommendation for approval over rival bidder Perseus Mining.

The ASX-listed takeover target released its target statement today, urging shareholders to accept the offer of 19 cents per share cash plus 0.0967 of a Silvercorp share for each share held in OreCorp.

It comes almost two weeks after Perseus announced its intention to make an all-cash counter-offer for OreCorp, after it acquired a 19.9 per cent stake in the company late last year.

Perseus’ major stake was purchased as Silvercorp bought up shares in its bid to acquire OreCorp, which is developing the Nyanzaga gold project in Tanzania.

But OreCorp has stuck to its recommendation in favour of Silvercorp’s offer and disputed Perseus’ claim that its 55 cents per share offer was superior.

OreCorp’s target statement was accompanied by the announcement that the Tanzanian Fair Competition Commission provided unconditional merger control approval for the proposed change of control with the Silvercorp offer.

OreCorp’s shares were trading up 0.87 per cent to 58 cents 2.20PM AWST.