Silvercorp Revises Bid, Offers $188M For Gold Explorer OreCorp

Author: Stjepan Kalinic | December 28, 2023 09:57am

Silvercorp Metals (NYSE:SVM) revised its takeover bid for Australian gold developer OreCorp Limited (ASX: ORR).

The company is now offering to buy all shares that it doesn’t already own in a deal valued at $188 million (A$276.5 million).

“We are pleased to adjust our transaction with OreCorp after it became clear that the previously proposed scheme, due to outside interference, was at risk of not completing,” said Silvercorp chairman and CEO Rui Feng.

Silvercorp already owns a 15.74% stake in OreCorp, representing about 73.88 million shares.

Feng emphasized the limited conditions attached to the offer, highlighting Silvercorp’s approval from the Tanzania Fair Competition Commission and the uncertainty surrounding alternative proposals.

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Under the revised terms, OreCorp shareholders are entitled to 0.0967 shares of Vancouver, Canada-based Silvercorp and A$0.19 in cash for each share held, translating to A$0.589 per OreCorp share.

The proposal is subject to a 50.1% minimum acceptance condition from OneCorp’s board, provided there is no superior bid.

OreCorp CEO Henk Diederichs said the board felt that the “new” Silvercorp offer was “an excellent outcome.”

Silvercorp’s takeover bid aligns with the broader industry trend of consolidation. The acquisition not only aims to create a globally diversified precious metals producer but also positions the company to leverage OreCorp’s Nyanzaga Gold Project in Tanzania.

The deal also allows Silvercorp to diversify. The company's core operations are concentrated in China, with main projects including Ying Mining District near Zhengzhou and GC Mine in Guangdong Province.

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Posted In: SVM