Shares in Orecorp (ASX:ORR) experienced a significant surge, moving up as much as 16.1% to A$0.505, the highest it’s peaked since April 14.

This considerable increase is owed to a proposed buyout from Canada’s metal mining corporation Silvercorp.

Under the agreement, Silvercorp proposes an implied total consideration of A$239.4 million, which breaks down into a part-cash and part-stock deal.

The total amount, translating to A$0.60 per OreCorp, represents a 31.5% premium on Orecorp’s closing share price as of August 4.

Furthermore, Silvercorp has offered to support Orecorp with A$28 million in funding for equity placement.

This immediate influx of resources is aimed at advancing the progress of Orecorp’s Nyanzaga Gold Project in Tanzania.

Despite these promising developments, OreCorp’s stock has seen about a 6.5% drop this current year, factoring in the most recent closing price.

Orecorp (ASX:ORR) is a mineral exploration company focusing on the Nyanzaga Gold Project in Tanzania.