Just days after revealing it is in the eyes of suitors Orbis Gold Limited (ASX:OBS) has rejected a cash takeover bid by Canada's Semafo Inc (TSE:SMF).
The gold miner has received a conditional, non-binding and indicative proposal valued at between $0.62 and $0.65 cents per share.
The bid is a premium of up to 55 per cent compared to the company’s last traded price of $0.42 ahead of entering into a trading halt.
Orbis’ board believes the bid significantly undervalues the company in terms of its existing assets and potential value.
Orbis also notes the revised scoping study for its Natougou Gold Project in Burkino Faso is imminent and may have a material impact on the company’s valuation.
Shareholders have been advised to take no action.
Orbis Gold reported a net loss of $8.8 million in the 2014 financial year.
