05/12/2018 - 15:46

Explaurum backs Alkane investment

05/12/2018 - 15:46

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Explaurum has asked shareholders to accept an $8 million placement from Alkane Resources on the same day a report from independent expert BDO said a hostile takeover bid from Ramelius Resources undervalued the gold explorer.

Explaurum is focused on developing its Tampia Hill gold project.

Explaurum has asked shareholders to accept an $8 million placement from Alkane Resources on the same day a report from independent expert BDO said a hostile takeover bid from Ramelius Resources undervalued the gold explorer. 

Ramelius launched a scrip offer for the explorer in September, whereby Ramelius would exchange one share for every four Explaurum shares, leaving its shareholders with a 19.8 per cent stake in the combined entity.

BDO valued Explaurum at between 10.4 to 14.3 cents per share, while Ramelius’ offer is within a range of 9.5 to 12.5 cents each.

The independent expert said the Explaurum offer was not fair and reasonable.

“The Explaurum board continues to recommend unanimously that shareholders reject the Ramelius offer by taking no action and that shareholders approve the Alkane strategic investment at the general meeting on 21 December 2018,” Explaurum said in a statement to the ASX.

In October, Explaurum said it would issue 66.6 million shares at 12 cents each to Alkane as part of an $8 million placement.

“The Alkane strategic investment has been recommended by the Explaurum Board as superior to the current Ramelius takeover offer,” Ramelius said.

“The Alkane placement issue price of 12.0c per share represents a 40 per cent premium to the closing price of Explaurum on 4 December 2018 (8.6c per share).

“The Alkane transaction also has no change of control implications.”

Explaurum is focused on its Tampia Hill gold project, which is located 240 kilometres east of Perth.

Shares in Explaurum finished down 1.2 per cent at 8.5 cents each today.

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