Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has now fully acquired all shares in Orca Gold, both via direct purchase and through subsidiary Perseus Canada Holdings Ltd (PCHL), by way of a statutory plan of arrangement under the Canada Business Corporations Act.
A total of 125,278,266 Perseus shares have been issued to Orca shareholders under the arrangement, satisfying the aggregate consideration to be paid by PCHL as part of the agreement.
As a consequence of acquiring a 100% interest in Orca Gold, Perseus has also gained 33 million common shares of Montage Gold Corp, representing a 31% interest in issued and outstanding Montage shares.
Montage holds three gold projects in West Africa, including the Koné Gold Project (KGP), which boasts an indicated NI 43-101-compliant (Canadian standard) gold resource of 4.27 million ounces of gold, an after-tax net enterprise value (NPV) of $746 million and an after-tax internal rate of return (IRR) of 35%.
Block 14 Gold Project
Perseus’ share acquisition is one of the last steps in gaining ownership over Orca’s assets, in particular a 70% interest in the highly prospective Block 14 Gold Project in Sudan.
According to market analysts at Cormack Securities Inc, Block 14 is one of the most promising undeveloped gold deposits in Africa, forecast to produce 228,000 ounces of gold per year at US$751 an ounce with an estimated capital expenditure (capex) all-in sustaining cost (ASIC) of US$321 million.
Block 14 holds a resource estimate of 79.9 million tonnes grading 1.3 g/t gold for 3.3 million ounces gold (indicated) and 18.5 million tonnes grading 1.2 g/t gold for 700,000 ounces (inferred).
Additionally, the project has a probable mineral reserve estimate of 79.9 million tonnes grading 1.1 g/t gold for 2.9 million ounces.