Perseus increases Orecorp offer

Perseus Mining has increased its offer consideration for takeover target OreCorp, upping its all-cash bid from 55 cents per share to 57.5 cents per share.

Orecorp, which has interests in East Africa, told the market that the Subiaco-based gold miner's conditional amended offer was subject to OreCorp's board backing their bid over Canadian rival Silvercorp.

Earlier this week, Perseus announced its bid for the company, which would include acquiring the Nyanzaga gold project, had received support from the Tanzanian government - and should its amended proposal be accepted, the government's free carry interest in the project would be increased from 16 per cent to 20 per cent. 

On February 2, OreCorp's Board formally backed Silvercorp's bid, with shareholders encouraged to support their offer of 19 cents per share cash plus 0.0967 of a Silvercorp share for each share held in OreCorp.

Two weeks prior, Perseus officially launched its bid for OreCorp, on the back of acquiring a 19.9 per cent stake in the company late in 2023, amid Silvercorp also increasing its interest in OreCorp.

Silvercorp now has until March 27 - five business days - to increase its offer.

"If, following expiration of the matching rights process under the bid, Silvercorp has not provided a counterproposal that would produce an equivalent or superior outcome for OreCorp’s Shareholders as compared to the amended proposal, the OreCorp Board intends on recommending that OreCorp shareholders accept the amended proposal in the absence of a superior proposal," OreCorp said.

In addition, two of OreCorp's major shareholders, Tim Goyder and Nick Giorgetta, have publicly outlined their intent to accept Perseus's amended proposal, should OreCorp's Board recommend it.

Mr Giorgetta and Mr Goyder hold 10.47 per cent and 5.14 per cent stakes in OreCorp respectively.

Perseus last traded at $2.02 per share, down 3 per cent as of 9.48am AWST, while OreCorp shares were up 3 per cent to 57 cents per share.