SEMAFAO is a Canadian-based mining company with gold production and exploration activities in West Africa.
The Australian-listed company focused on the discovery and development of large-scale gold deposits in the world’s premier mineral provinces said it was not impressed by SEMAFAO’s 100 per cent offer to acquire the company.
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There are no assurances that this approach will lead to an offer for the company or its assets being made, either now or in the future.
SEMAFAO wanted to acquire the resources company’s issued ordinary shares for cash consideration of between 0.62 Australian dollars to 0.65 Australian dollars per share.
“Following careful review and analysis of the proposal, Orbis Gold Board has unanimously determined the proposal significantly undervalues Orbis Gold in terms of its existing assets and the potential value the company expects to deliver to its shareholders,” said the company.
“As previously disclosed to the market, the company is currently updating its Scoping Study for the Natougou Project following the expanded mineral resource estimate announced in August 2014.”
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The group added that results of this study are expected to be announced in the following days and may have a material impact on the valuation of the company.
The group said SEMAFO’s proposal was made prematurely ahead of the company’s release of this update and with knowledge that the update was imminent.
“In the course of discussions leading to the proposal, SEMAFO declined an invitation to conduct due diligence on Orbis Gold’s assets under Orbis Gold’s standard confidentiality terms and receive this updated scoping study data when made available.”
The resources group said the due diligence offer were meant to assist SEMAFO with an opportunity to put forward a proposal that the Orbis Gold Board may have considered to be in the interests of shareholders.
Orbis Gold, against a backdrop of these developments, has appointed Merrill Lynch as its defence adviser.
The appointment follows recent confidential approaches made to Orbis Gold in relation to a range of potential transactions, at both a corporate and asset level.