Ramelius Resources has revised its hostile takeover offer for gold-focused Explaurum, adding a 2 cents per share sweetener to its original deal.
Ramelius Resources has revised its hostile takeover offer for gold-focused Explaurum, adding a 2 cents per share sweetener to its original scrip offer.
Under the new offer, Ramelius will offer one share for every four Explaurum shares, along with the new cash component of 2 cents per share.
Based on Ramelius’s last closing price, the new offer values Explaurum at 13.4 cents per share.
The Ramelius bid is 11.7 per cent higher than the planned $8 million placement from Alkane Resources, which Explaurum’s board has backed.
Ramelius said it had received support from 14.3 per cent of Explaurum shareholders for its offer, which would take acceptances to about 19.9 per cent, including its own stake.
A report from independent expert BDO valued Explaurum at between 10.4 to 14.3 cents per share and said Ramelius’s original offer was not fair and reasonable.
Ramelius said it believes the new bid is fairly valued.
“In the view of Ramelius, the improved offer should be considered as both fair and reasonable,” the company said in a statement to the ASX.
The Mark Zeptner-led gold producer said it had also offered Explaurum a line of credit if its shareholders failed to accept the Alkane deal.
“We see our improved offer as striking an ideal balance in our desire to provide value accretive returns to shareholders of both companies as we work towards the development of the Tampia project,” Mr Zeptner said.
“We remain committed to carrying out a strategic review, typically over several months (as opposed to several weeks), using additional information from further drilling, metallurgical test work and on-the-ground assessment of exploration potential, before finalising the best economic option for the asset.
“We have received strong support from major shareholders of Explaurum and we are of the view that our offer represents an excellent outcome for both Explaurum and Ramelius shareholders.”
Shares in Ramelius finished down 4.4 per cent at 44 cents each today, while Explaurum shares jumped 29.4 per cent to 11 cents each.
