28/02/2022 - 12:12

Perseus buys Sudan project

28/02/2022 - 12:12

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Perseus Mining has struck a friendly $C219 million deal to acquire full ownership of Canada’s Orca Gold Inc, which owns 70 per cent of a development project in Sudan.

Perseus buys Sudan project
Perseus owns the Yaouré mine in Côte d’Ivoire. Photo: Perseus Mining

Perseus Mining has struck a friendly $C219 million deal to acquire full ownership of Canada’s Orca Gold Inc, which owns 70 per cent of a development project in Sudan.

Perseus said the acquisition would deliver a fully licensed project that was capable of being developed into a large-scale, long-life gold mining operation.

The company added it was well-supported by Sudanese shareholders who collectively own 30 per cent of the Block 14 project.

Managing director Jeff Quartermaine said it represented a very exciting growth opportunity.

“We have the financial capacity, technical expertise, and in-country relationships, in combination with Orca’s existing management team, to bring Orca’s Block 14 Project into production and in the process, create material benefits for all stakeholders including the government and citizens of Sudan,” he said.

Perseus has three operating gold mines: Edikan in Ghana, and Sissingué and Yaouré in the neighbouring country of Côte d’Ivoire.

They produced 328,632 ounces in FY21 and are on track to produce about 500,000oz in FY22.

The Orca project is designed to help Perseus maintain its targeted production level well into the next decade.

Block 14 has a Probable Mineral Reserve Estimate of 79.9 million tonnes grading 1.1 grams per tonne for 2.9 million ounces of gold.

Perseus currently owns 15 per cent of Orca, for which it paid 44.8 Canadian cents in cash.

It has offered 0.56 Perseus shares for every Orca share outstanding, which equates to $C0.896 per Orca share.

This represents a premium of 62.9 per cent to the last closing price of Orca shares.

The total consideration includes $C17 million in cash previously paid to acquire its initial 15 per cent equity interest and C$198 million in Perseus shares to acquire the balance.

The deal has been supported by Orca’s board of directors and by shareholders with a combined 37 per cent stake.

Orca shareholders will own approximately 9.1 per cent of the enlarged issued share capital of Perseus.

Perseus was advised by Sternship Advisers and law firms Corrs Chambers Westgarth (in Australia) and Fasken Martineau LLP (in Canada).

Perseus shares were up 4.5 per cent today at $1.82, close to a one-year high.

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