Canadian precious metals company Silvercorp Metals has secured clearance from the Tanzanian Fair Competition Commission (FCC) for its previously announced acquisition of Western Australia-based mining exploration firm OreCorp.

Silvercorp Metals said that the FCC approval represents the only Tanzanian regulatory requirement needed to close the deal.

Initially, both parties signed a binding scheme implementation deed in August 2023, under which OreCorp’s shareholders were to receive A$0.15 ($0.099) in cash per share and 0.0967 of a Silvercorp common share valued at A$0.45 ($0.3).

The offer was then amended in November 2023 to increase the consideration to A$0.19 ($0.13) per share in cash.

Under the sweetened deal, Silvercorp Metals will buy all shares of OreCorp that were previously not owned by it or its affiliates for the increased price and 0.0967 of a new Silvercorp Metals’ common share.

Currently, the Canadian precious metals company owns 72.3 million issued and outstanding common shares of OreCorp which represents 15.4%.

Silvercorp Metals stated: “The Company would like to thank the FCC for providing support throughout the expedited approval process.

“The Company would also like to express its appreciation to the Tanzanian Honourable Minister for Minerals, Permanent Secretary for Minerals, Treasury Registrar and the Tanzanian Mining Commission, all of whom have expressed support to Silvercorp and OreCorp.”

OreCorp owns an 84% interest in the Nyanzaga gold project located in the Mwanza region, Tanzania, in partnership with the Tanzanian government.

The gold project has secured all key permits and is expected to achieve its first gold in the second half of 2025.

According to the definitive feasibility study released in August 2022, the Nyanzaga gold project will produce 2.5 million ounces of gold over a 10.7-year life.