Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF)’s acquisition of Orca Gold Inc (TSX-V:ORG). has taken a positive step forward after Orca security holders voted in favour of implementing a statutory plan of arrangement under the Canada Business Corporations Act
The vote, taken at a special meeting of Orca security holders on May 16 in Vancouver, was the next step in the completion of the acquisition.
Completion of the arrangement remains subject to final approval by the TSX Venture Exchange and the Toronto Stock Exchange but this is expected on May 19, just a day after the granting of the final court order by the Supreme Court of British Columbia at a hearing scheduled for May 18, 2022.
Orca acquisition
Perseus began the acquisition process on February 28 this year, when it entered into a definitive agreement with Orca to acquire all of the outstanding common shares of Orca not already owned by Perseus, by way of the arrangement.
The company announced it would buy the remaining 85% stake in the company for C$198 million (A$220 million) in Perseus shares, with a total consideration of C$215 million to be paid, including the C$17 million cash paid previously for an initial 15% stake in the company.
This was a strategic acquisition for PRU, with Perseus managing director and CEO Jeff Quartermaine saying at the time, “When the transaction is completed, Perseus will have three operating mines currently producing gold at a rate of approximately 500,000 ounces per year and a high-quality development project that if brought on stream, as intended, should ensure that Perseus can maintain or exceed its targeted production level well into the next decade.
“With the objective of operating four mines, Perseus will be well advanced towards fulfilling its aim of becoming a highly profitable, well managed, pan-African gold company that consistently creates benefits for all stakeholders.”
Read: Perseus Mining to buy remaining 85% stake in Orca Gold for C$198 million in shares
Perseus has been working closely with Orca management over the last few months, to plan the integration of the two companies and enable the development of Orca's Block 14 Gold Project in Sudan, which they plan to action as soon as possible.
Cormark Securities Inc, has noted that Block 14 has some of the best potential of any undeveloped gold deposit in Africa, forecast to produce 228,000 ounces of gold per year at US$751 per ounce, with an estimated capital expenditure/AISC (all in sustaining cost) of US$321 million.