Silvercorp Metals Declared Takeover Offer for OreCorp

SEATTLE (Scrap Monster): Canada-based precious metals company Silvercorp Metals, Inc. has entered into a Bid Implementation Deed (BID) to acquire all of the shares it doesn’t own currently of OreCorp Limited- the leading African gold developer.

The shares will be acquired by means of an off-market takeover offer. The deal is for a consideration of 0.0967 common shares of Silvercorp and A$0.19 cash per OreCorp share. The transaction aims to create a globally diversified precious metals producer.

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Rui Feng, Silvercorp’s chairman and CEO said in a media statement that the company is pleased to adjust its transaction with OreCorp, after it became clear that the previously proposed scheme was at risk of not completing. The earlier cash offer made in November this year had valued OreCorp at around $170 million.

The offer is subject to very limited conditions. It must be noted that the company has already obtained the required approval from the Tanzania Fair Competition Commission. More details regarding the offer will be disclosed in Silvercorp’s Bidder’s Statement and OreCorp’s Target’s Statement, which are expected to be released soon.

The OreCorp’s Nyanzaga Gold Project in Tanzania has the potential to deliver 242,000 oz. of gold per annum over the first 10 years of operations, with peak production expected at 295,000 oz. per year.