OreCorp recommends Perseus offer

OreCorp's Board has unanimously recommended that its shareholders accept an amended takeover proposal from Perseus Mining, in the absence of a superior offer. 

The Subiaco-based resources company told the market it had terminated its bid implementation deed with rival bidder Silvercorp Metals, after the Canadian company didn't meet the 50.1 per cent minimum acceptance condition prior to the matching rights process lapsing. 

"OreCorp notified Silvercorp of the terms of the amended proposal and that OreCorp determined that the amended proposal was a superior proposal," the company said. 

Last week, Perseus amended its cash offer from 55 cents to 57.5 cents per OreCorp share - and late last year, increased its stake in OreCorp to 19.9 per cent.

This development also resulted in two major Orecorp shareholders, Tim Goyder and Nick Giorgetta, publicly signalling their intent to support Perseus in the absence of a superior proposal. 

Perseus also said it had discussed the takeover and subsequent acquisition of the OreCorp's Nyanzaga gold project in Tanzania with the Tanzanian government. Once the proposal has been finalised, the government's free carry interest in the project will increase from 16 per cent to 20 per cent. 

An African-focused goldminer, Perseus posted a net profit after tax of $164.6 million during the first six months of the 2024 financial year, up 21 per cent from $136.3 million during the prior corresponding period.

In addition, the Jeff Quartermaine-led company had $581.4 million cash in the till up until December 31 2023, rising from $481.5 million on June 30 2023. 

Orecorp last traded at 57.5 cents per share, down 1 per cent, and Perseus shares rose 1 per cent to $2.06 as of 9.52am AWST.