Silvercorp Metals and OreCorp have amended their previously announced binding scheme implementation deed to allow the former to acquire the Western Australia-based mining exploration firm at an increased price of A$260m ($171m).

Under the amended deed, the Canadian precious metals company will buy all shares of OreCorp that were previously not owned by it or its affiliates for A$0.19 in cash and 0.0967 of a new Silvercorp Metals’ common share.

The consideration in the scheme implementation deed that was signed in August 2023 was A$0.15 plus 0.0967 of a Silvercorp Metals’ common share, which translates to A$240m ($158m).

Currently, Silvercorp Metals owns 15.4% of OreCorp’s issued and outstanding common shares.

OreCorp owns an 84% stake in the Nyanzaga gold project in Tanzania, which is anticipated to achieve commercial production in the latter half of 2025. Its acquisition by Silvercorp Metals is geared towards establishing a diversified precious metals company with a pro forma market capitalisation of $630m.

The board of OreCorp has unanimously endorsed the amended scheme and is recommending all shareholders to vote in favour during an upcoming meeting early next month. This recommendation is conditional upon the absence of a superior proposal and is subject to the board’s independent expert determining that the revised scheme is in the best interests of OreCorp’s shareholders.

Silvercorp Metals said that shareholders, accounting for 18.45% of OreCorp’s shares not held by it, have submitted voting intention statements, expressing their support for the transaction.

Earlier this month, Silvercorp Metals obtained the sole Tanzanian regulatory approval necessary to finalise the deal.

The only outstanding conditions for the takeover include OreCorp shareholders endorsing the revised scheme, obtaining final approval from the Federal Court of Australia, and securing acceptance from the Toronto Stock Exchange (TSX) and NYSE American regarding the issuance and listing of new Silvercorp Metals common shares pursuant to the revised scheme.