Explaurum backs new Ramelius bid

The board of Explaurum has backed a revised takeover offer from Mark Zeptner-led Ramelius Resources for the gold explorer.

Gold miner Ramelius announced the new offer last week, adding a 2 cents per share sweetener to its original scrip offer, which comprised one Ramelius share for every four Explaurum shares.

The new deal values Explaurum at about 13.4 cents per share.

Explaurum has recommended shareholders accept the improved offer.

“The Explaurum directors have carefully considered the terms of the Improved Offer and have unanimously resolved to recommend that Explaurum shareholders accept the improved offer, in the absence of a superior proposal,” the company said in a statement to the ASX.

“Each Explaurum director who has a relevant interest in Explaurum shares intends to accept the improved offer, in the absence of a superior proposal for all of the Explaurum shares in which they have a relevant interest.”

Ramelius now owns 26.7 per cent of Explaurum following a series of purchases in recent weeks.

As part of the deal, Ramelius will provide Explaurum with a short term loan facility.

Explaurum said its planned $8 million share placement to Alkane Resources, which the company had previously endorsed, would now be cancelled.

Shares in Explaurum jumped 9.5 per cent to 12 cents each at the close.