Earlier this year, Perseus announced plans to buy all the outstanding common shares of Orca. Total consideration to buy Orca is C$215 million (A$239 million). Perseus has already paid C$17 million in cash for an initial 15 per cent interest, with C$198 million left to pay to secure the remaining 85 per cent.
While shareholders have voted in favour of the deal, final completion is subject to approval by the TSX Venture Exchange and the Toronto Stock Exchange, as well as a court order by the Supreme Court of British Columbia. Gold developer, Orca is focused on mineral proprieties in Africa. It owns a 70 per cent interest in the Block 14 project in northern Sudan near the Egypt border. On the market, PRU shares were up 1.7 per cent and trading at $1.73 per share at 2:37 pm AEST.
“The potential acquisition represents a “very exciting” growth opportunity for the company. The acquisition aligns with our strategy of upgrading the size, quality and geographic distribution of our asset portfolio,” Mr Quartermaine said in a statement to the ASX in February. We have the financial capacity, technical expertise, and in-country relationships, in combination with Orca’s existing management team, to bring Orca’s Block 14 Project into production and in the process, create material benefits for all stakeholders including the government and citizens of Sudan,” said Perseus CEO and Managing Director Jeff Quartermaine.