M&A

OreCorp wraps-up Nyanzaga ownership

Investor interest in OreCorp has surged after the Tanzania-focused gold contender said it was paying US$7 million to Acacia Mining for the 49% balance of the multi-million ounce Nyanzaga resource it doesn’t already own.

Michael Quinn
OreCorp wraps-up Nyanzaga ownership

The consolidation comes after OreCorp spent about $14 million for its initial 25% stake and recently agreed to pay another $3 million to reach 51%. 
 
Acacia also now has a net smelter royalty capped at $15 million.
 
While the payments notionally take OreCorp to 100% at Nyanzaga, the Tanzanian government is set to become an equity holder in the project with a free carried interest of not less than 16%.
 
Nyanzaga hosts a current resource of 3.1 million ounces at four grams per tonne gold.
 
A definitive feasibility study is underway with a pre-feasibility outlining a 213,000oz per annum operation costing about $290 million to develop and having all-in-costs of $857/oz.
 
OreCorp had cash at the start of the June quarter of A$16 million.
 
Shares in OreCorp were up 56% in morning trade to A26.5c, capitalising the company at $57 million. 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.