Perseus Mining gatecrashes Predictive-Robex gold tie-up

Australian minerals explorer Predictive Discovery said on Wednesday it has received a superior A$2.1 billion ($1.38 billion) takeover proposal from Perseus Mining, driving its shares to their highest level in more than 13 years.

The new proposal tops an agreement with Canada’s Robex Resources in October that valued Predictive at A$1.32 billion.

The proposed combination aims to leverage synergies in West Africa, where Perseus has extensive experience in developing and operating gold mines.

The deal comes as global gold prices have repeatedly hit record highs this year amid expectations of lower US interest rates.

Predictive is advancing its Bankan gold project in Guinea, while Perseus operates three gold mines in West Africa – one in Ghana and two in Ivory Coast – and is also developing a project in Tanzania.

As of 01:54 GMT, shares of Predictive soared as much as 27.2% to A$0.795, their highest point since mid-May 2012. Perseus traded 3.9% lower at A$5.51.

Perseus already holds 17.8% of Predictive’s outstanding ordinary shares. Its offer carries a 24.5% premium to Predictive’s last close and values the stock at A$0.778 a share, with shareholders to receive 0.136 Perseus shares for each Predictive share.

Under the merger plan with Robex, shareholders were offered 8.667 shares of Predictive Discovery for every Robex share they held, around a 14% premium.

In a Wednesday filing, Robex said its board is reviewing options. Under its agreement with Predictive, the gold explorer has five business days to decide whether to match the rival bid or walk away from the deal.

Under the new proposal, Perseus would also provide an A$37 million unsecured loan facility to cover any termination fee payable to Predictive, along with funding for working capital and pre-development costs.

($1 = 1.5235 Australian dollars)

(By Roshan Thomas and Melanie Burton; Editing by Maju Samuel and Sherry Jacob-Phillips)