Once completed, it will take the total consideration paid for Orca to C$215 million ($168.44m), which includes the C$17 million cash Perseus previously paid.
As per the share exchange ratio, Orca Gold’s shareholders will own a nearly 9.1% stake in the enlarged Perseus Mining after the closing of the deal.
Orca Gold’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 life of mine.
Proven and probable reserves of Block 14 stand at about 2.85 million ounces at an assumed gold price of $1,350/oz.
The company also has a 31.4% stake in Canada-based 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…
