Orecorp aborts Silvercorp deal and endorses Perseus takeover

The news: Gold miner Orecorp has recommended that shareholders accept an improved takeover bid by Perseus, after terminating the bid from rival suitor Silvercorp.

The numbers: OreCorp's board has terminated its deal with Canadian miner Silvercorp after it failed to secure the 50.1% minimum acceptance condition on its off-market takeover bid by Friday.

Last week, ASX-listed miner Perseus made an improved proposal of 57.5 cents per OreCorp share, topping Silvercorp's scrip deal valuing OreCorp at 53.4 cents per share. Silvercorp is entitled to a break fee of $2.8 million.

Orecorp's shares last closing price was 58 cents.

The context: OreCorp, who had given Silvercorp until 27 March to match the bid, is now recommending that its shareholders accept Perseus' bid. Its directors, who hold around 3.9% of the company's shares, have confirmed they intend to accept the amended proposal.