Ramelius says its not interested in Doray bid

Gold producer Ramelius Resources poured cold water on talk its newly acquired stake in promising Western Australian explorer Doray Minerals foreshadowed a take-over bid.

Ramelius managing director Ian Gordon said its acquisition of a 5.4 per cent interest in Doray was an investment in a “very nice, high-grade gold deposit that could get bigger.”

The Wilber Lode discovery at Doray’s Andy Well project was the highest grade virgin gold discovery in Australia this year.

Mr Gordon said Doray was expected to upgrade Wilber Lode’s resource within the next few months but he said Ramelius had not made any resolve to do anything other than hold its stake as an investment.

“Beyond that who could tell… but we certainly haven’t considered that (a take-over) at this point in time,” Mr Gordon said.

Ramelius has been building its stake in Doray through on-market acquisitions since June.

The company is a WA-focused gold producer with operations at Wattle Dam near Kambalda and Hill 50, near Mount Magnet.

Doray listed on the ASX in February 2010 and was one of the best performing initial public offerings in calendar 2010.

Managing director Allan Kelly said the company had contacted Ramelius with a “view to determining its intentions in relation to its holding in Doray.”