Orbis Gold (ASX:OBS) has rejected a conditional, nonbinding and indicative proposal of between $0.62 and $0.65 from Canada’s SEMAFO (TSE:SMF) that valued the company at up to $162.44 million.
Its board unanimously said the offer undervalues the company both in terms of its existing assets, and the potential value it expects to deliver in the near future.
The offer is interesting in light of the $615 million takeover of Papillon Resources (ASX:PIR) by B2Gold Corporation (TSE:BTO, NYSE:BTG) that was completed earlier this month.
In September, Norton Gold Fields (ASX:NGF) closed its off-market takeover offer for Bullabulling Gold (ASX:BAB) with more than 90% take up of its offer and is proceeding with compulsory acquisition of the remaining shares.
Orbis is currently updating its Scoping Study for the Natougou Project on its updated Resource of 18 million tonnes at 3.4 grams per tonne gold for 2 million ounces.
Key takeaways include an NPV of US$446 million, IRR of 60%, payback of 1.4 years and free cashflow of US$560 million.
