Orbis Gold (ASX:OBS) should trade higher again today after an off market, cash takeover bid by SEMAFO (TSX:SMF) at $0.65 per share.
Earlier this week, SEMAFO lodged an indicative bid at $0.62 to $0.65 per share that valued the company at up to $162.44 million.
Orbis rejected this bid as undervaluing it both in terms of its existing assets and the potential value it expected to deliver in the near future.
Last month, Orbis entered into binding agreement for Greenstone Resources to purchase US$20 million worth of new shares at A$0.42 per share, which represented a substantial premium to Orbis’ share price at the time.
Orbis is now fully funded to advance the Natougou Gold Project to a construction decision, with capacity to complete a Definitive Feasibility Study, advance the Nabanga Gold Project, and continue exploration activities on other gold targets in Burkina Faso and Cote d'Ivoire.
Orbis' September 23rd press release stated that the Greenstone placement at $0.42 could be superseded by a superior offer, which the SEMAFO offer appears to be.
On the 13th October, Orbis revealed it had appointed Merrill Lynch as its defence adviser.
Merrill Lynch's appointment followed recent confidential approaches made to Orbis in relation to a range of transactions at corporate and asset level.
Natougou is a large-scale high-grade gold deposit, with a Resource of 15 million tonnes at 3.7g/t gold for 1.8 million ounces.
A Scoping Study delivered a positive result indicating potential for a low cost open pit mine production up to 213,000 of gold per annum over an initial 6.2 year mine life.
