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February 28, 2022

Perseus Mining to acquire remaining stake in Orca Gold for $155.8m

Perseus will buy the remaining 85% interest in Orca by issuing 0.56 of its shares for every Orca share.

Perseus Mining has agreed to purchase all of the outstanding common shares of Canadian firm Orca Gold it does not already own, via a statutory plan of arrangement.

Perseus currently owns a 15% stake in Orca, which it acquired for $13.3m (C$17m) in cash. It will buy the remaining holding for $155.8m (C$198m).

Under the definitive agreement, Perseus will buy the remaining 85% equity interest in Orca by offering 0.56 Perseus shares for every Orca share.

Orca’s board has unanimously recommended its shareholders to vote in favour of the deal, which is expected to be ‘net asset value per share accretive’.

The shareholders’ meeting is scheduled in May, with the transaction expected to complete in early June. Clearance of Perseus shareholders is not needed.

The takeover complies with Perseus’s plan to upgrade the quality, size, and geographic distribution of its African-focused gold asset portfolio.

Orca holds a 70% interest in the Block 14 Project in northern Sudan near the border with Egypt.

According to the probable mineral reserve estimate, the project holds 79.9Mt grading 1.1g/t Au for 2.9Moz Au.

Orca also holds a 31.4% stake in Montage Gold, which owns the Koné Gold Project in the Côte d’Ivoire.

Perseus managing director and CEO Jeff Quartermaine said: “When the transaction is completed, Perseus will have three operating mines currently producing gold at a rate of approximately 500,000oz 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.”

The deal awaits court and regulatory approval, as well as other customary closing conditions.

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