- Perseus has agreed to acquire 39,092,233 million common shares in Orca representing 15 per cent of Orca’s common shares from Resolute Mining Limited
- Perseus has agreed to provide Orca with a US$5.0 million loan to be used to fund exploration and development activities
- Orca is a gold developer with stakes in several gold projects in Africa
- Orca Gold Inc. (PRU) opened trading at C$0.41 per share
Perseus Mining (PRU) has agreed to acquire a 15 per cent interest in Orca Gold from Resolute Mining Limited.
Perseus has agreed to acquire 39,092,233 million common shares in Orca representing 15 per cent of Orca’s common shares. Total consideration for the acquisition is approximately C$17.5 million.
Simultaneous with the RSG share acquisition, Perseus has agreed to provide Orca with a US$5.0 million short-term loan. Orca plans to use the loan for working capital and for further exploration and development activities. The loan matures on June 30, 2022, with interest charged at a rate of 7.5 per cent per annum.
Perseus’s Managing Director and CEO Jeff Quartermaine commented on the acquisition.
“The acquisition of the 15 per cent interest in Orca provides Perseus with a pivotal position in Orca that gives us a platform from which to further evaluate what appears to be a very exciting potential growth opportunity. Perseus has recently achieved an annualised gold production rate of 500,000 ounces of gold per year from its three existing operating mines, and while it expects to be able to maintain this level of production based on exploration success around its existing gold mines, we are always seeking to identify value accretive inorganic growth opportunities. We believe that Orca could represent such an opportunity.”
Orca is a gold developer whose key assets include a 70 per cent interest in the Block 14 Gold Project in northern Sudan and a 31.5 per cent interest in Montage Gold Corp, which owns the Koné Gold Project in northern Côte d’Ivoire.
Orca Gold Inc. (PRU) opened trading at C$0.41 per share.
