Ramelius Resources yesterday extended the offer period for its attempted acquisition of Dioro Exploration by three weeks, after nearly doubling its holdings in the target in the previous two days.
The company’s holdings in Dioro surged to 21.4% on Monday afternoon, after receiving 8.6 million shares from accepting shareholders in the final days of the offer.
These shares represent around 9.5% of the Dioro register.
The offer was due to close yesterday, but will now elapse on 2 November, unless extended further.
Ramelius is offering one of its ordinary shares for every two Dioro shares.
“The rate of acceptance has built on a daily basis at very encouraging levels,” the company’s chairman Robert Kennedy said yesterday.
“We originally made the bid because of the appeal of Dioro’s nearby Frog’s Leg Gold Mine.
“On the current rate of acceptances, our effective interest in that project is now more than 10% and is growing by the day.
“We believe Dioro shareholders are also digesting the measurable upside of being part of a new, high-grade underground gold mining play, especially while global gold prices hold firm above US$1000 an ounce.”
Dioro’s independent directors last month urged shareholders to reject the Ramelius bid.
In a target statement, the directors said the merger was unlikely to succeed, Dioro’s gold assets were more valuable than Ramelius’ and that shareholders would lose an entitlement to Capital Gains Tax rollover relief.
The company made its unconditional bid on 30 July, the day after long-running takeover negotiations between Dioro and Avoca Resources had to come to a close.
Dioro directors had pushed Avoca’s bid up to one Avoca share for every 2.3 Dioro shares, recommending it to shareholders in the absence of a superior proposal.
Avoca closed its offer on 19 August before Ramelius’ bid had actually opened, finishing with a 44.85% stake to become Dioro’s major shareholder.