Perseus Mining announces full takeover of African gold explorer Orca Gold

Mid-tier gold company Perseus Mining is buying the shares it doesn’t already own in smaller Africa-focused player Orca Gold, in an all-stock deal worth US$155.1 million.

Australia’s Perseus, which operates gold mines in Ghana and Côte d’Ivoire, acquired an initial 15% stake in Orca just over a month ago. The latest transaction grants Perseus full ownership of the Canadian gold developer.

Once completed, it will take the total consideration paid for Orca to $168.44 million, which includes the $13.4 million cash Perseus previously paid. Orca shareholders will own approximately 9.1% of the enlarged Perseus Mining after the closing.

Orca’s main asset is the Block 14 gold project in Northern Sudan, in which it has a 70% stake. The asset is expected to produce 228,000 ounces of gold annually for the first seven years of a 13.5 year life.

The company also has a 31.4% stake in Canadian firm Montage Gold, which owns the Koné Gold Project in Côte d’Ivoire.

“This important transaction not only brings credibility to Sudan as a mining jurisdiction to invest in, but also provides Orca shareholders an avenue to continue realising the value of Block 14 and the successes of Montage,” Orca CEO Richard Clark said.

@RGNonline