Henk Diederichs
Photo by: Paydirt/Rift Photography
PERTH (miningweekly.com) – TSX- and NYSE-listed SilverCorp’s development timeline for the Nyanzaga gold project, in Tanzania, aligned closely with those of takeover target OreCorp.
OreCorp CEO and MD Henk Diederichs told delegates at Paydirt’s Africa Downunder conference that the A$28-million in funding received from Silvercorp to advance the resettlement activities for the Nyanzaga project was a clear statement that Silvercorp was proposing to progress the development of Nyanzaga "along a similar timeline" as what OreCorp had planned.
OreCorp holds an 84% interest in the Nyanzaga gold project in partnership with the government of Tanzania. Key permits are in place to develop Nyanzaga for first gold in the second half of 2025. A definitive feasibility study, announced in 2022, estimated that Nyanzaga could deliver 2.5-million ounces of gold over a 10.7-year life.
“The Silvercorp development plan for Nyanzaga is not dissimilar to what OreCorp had contemplated. OreCorp contemplates a slightly deeper and therefore larger openpit and then a phased approach, with the openpit starting first followed by the development of the underground a couple of years thereafter,” said Diederichs.
Under a binding implementation deed signed earlier this year, Silvercorp will acquire all of the shares in OreCorp not already held for 15c in cash and 0.0967 of a Silvercorp share for every OreCorp share held, representing an implied value of 60c for each OreCorp share.
The offer presents a 41.7% premium to OreCorp’s 20-day volume weighted average share price, and a 31.5% premium to the company’s last share trade on August 4.
The two companies are hoping to complete the transaction before the end of the year.