As soon as accomplished, it’s going to take the overall consideration paid for Orca to C$215 million ($168.44m), which incorporates the C$17 million money Perseus beforehand paid.
As per the share change ratio, Orca Gold’s shareholders will personal a virtually 9.1% stake within the enlarged Perseus Mining after the closing of the deal.
Orca Gold’s important asset is the Block 14 gold mission in northern Sudan, during which it has a 70% stake. The asset is predicted to supply 228,000 ounces of gold yearly for the primary seven years of a 13.5 yr lifetime of mine.
Confirmed and possible reserves of Block 14 stand at about 2.85 million ounces at an assumed gold worth of $1,350/oz.
The corporate additionally has a 31.4% stake in Canada-based Montage Gold, which owns the Koné Gold Mission in Côte d’Ivoire.
“This necessary transaction not solely brings credibility to Sudan as a mining jurisdiction to put money into, but additionally offers Orca shareholders an avenue to proceed realising the worth of Block 14 and the successes of Montage,” Orca Gold CEO Richard Clark said in the statement.
Africa’s gold rush
Northern Sudan has attracted lots of of 1000’s of artisanal miners within the final decade, which Clark describes as the most important gold rush ever seen in Africa. The nation produces 100 tonnes of gold a yr, making it one of many largest on the continent.
Perseus’s transfer expands and consolidates its presence in West Africa, the place it at the moment operates three gold mines — Edikan in Ghana, and Sissingué and Yaouré in Côte d’Ivoire.
As soon as the acquisition of Orca is finalized, the Australian miner can have three working mines at the moment producing gold at a charge of roughly 500,000 ounces per yr and a high-quality growth mission that has the potential to make sure that Perseus maintains or exceeds its focused manufacturing degree into the subsequent decade.
“With the target of working 4 mines, Perseus might be nicely superior in the direction of fulfilling its intention of changing into a extremely worthwhile, nicely managed, pan-African gold firm that constantly creates advantages for all stakeholders,” Perseus Mining CEO Jeff Quartermaine famous.
The deal, anticipated to shut in early June 2022, is topic to Orca Gold’s safety holders’ approval, court docket approval, regulatory approvals, and different customary situations.