Silvercorp Metals and OreCorp have signed a binding scheme implementation agreement where Silvercorp will acquire all fully paid ordinary shares of OreCorp not held by Silvercorp or its associates.
Silvercorp Metals is headquartered in Vancouver, Canada and primarily mine and supply silver.
OreCorp is an ASX-listed exploration company that has its Nyanzaga gold project located in northwest Tanzania.
Under the agreement, OreCorp shareholders will receive $0.15 in cash and 0.0967 of a Silvercorp common share (valued at $0.45) for each OreCorp share held. This represents a total consideration with an implied value of $0.60 per OreCorp share.
OreCorp’s board has unanimously recommended that OreCorp shareholders vote in favour of the acquisition, subject to no superior proposal emerging.
Silvercorp Metals is expected to provide OreCorp with approximately $28 million in funding through an equity placement to advance development of the Nyanzaga project, including progressing resettlement activities and early project works.
“This transaction will create a new globally diversified precious metals producer,” Silvercorp chief executive officer (CEO) Rui Feng said.
“We believe this is a rare opportunity to leverage our technical expertise and strong balance sheet to unlock value for all shareholders by bringing Nyanzaga into commercial production by the second half of 2025 (H2 2025).
“Under the leadership of Her Excellency, President Samia Suluhu Hassan, Tanzania is becoming an attractive place for foreign investment. We look forward to partnering with the Government of Tanzania and leveraging OreCorp’s existing team and relationships to ensure a successful development that benefits all stakeholders.”
OreCorp CEO Henk Diederichs said the transaction provides OreCorp shareholders with an immediate and significant upfront premium and exposure to a geographically diverse mid-tier precious metals company.
“With a strong operating history, solid balance sheet and significant mine building and operational experience, Silvercorp’s management team is well-positioned to fund and advance Nyanzaga into commercial production,” Diederichs said.