HomeGoldOrbis Gold board recommends increased SEMAFO revised offer price

Orbis Gold board recommends increased SEMAFO revised offer price

Orbis Gold and West African-focused Canadian explorer SEMAFO today jointly announced a revised takeover offer for Orbis Gold under which Orbis Gold shareholders will be offered A$0.713 cash per Orbis Gold share.

Orbis Gold is developing its Natougou gold project in Burkina Faso.

All of the Orbis Gold directors, together representing 2.8% of Orbis Gold’s shares, have committed to accept the revised offer. In addition, shareholders representing in aggregate 62.2% of Orbis Gold (including major shareholder DGR Global) have indicated to Orbis Gold an intention to accept the revised offer.

The closing date for the offer is 20 February 2015. SEMAFO will declare the revised offer unconditional as soon as practicable after it has obtained valid acceptances of more than 50.1% of Orbis Gold shares.

“We are delighted that the Orbis Gold board is unanimously recommending our revised offer, and look forward to working with the Orbis team on an orderly transition, said” SEMAFO’s CEO Benoit Desormeaux.

SEMAFO has indicated this is its best and final offer and will not increase the offer price again and will provide funding of A$17.4 million for the purposes of assisting Orbis Gold with immediate liquidity requirements. This will eliminate the need for Orbis Gold to pursue dilutive capital raising alternatives.

“This unanimous recommendation to accept SEMAFO’s revised offer has been made after careful consideration and the decision to recommend it was not taken lightly, particularly in light of the current volatility in world equity markets,” Orbis Gold’s Chairman John Bovard concludes.