Ramelius Resources yesterday extended the closing date for its takeover bid for Dioro Exploration by a month to 2 December.
As of yesterday, the company said it had acquired 29.02% of Dioro’s shares.
This is the second time the company has extended its offer period in the last month, after it pushed back the closing date to yesterday on 12 October.
At that time, the company had experienced an eleventh-hour surge to acquire a 21.4% holding in Dioro.
According to Dioro chief executive Ian Gordon, the company has continued to receive a steady stream of acceptances in the first extension period.
“We feel we can continue to get those acceptances and hence acquire a greater interest in Dioro and its assets,” he told MINING DAILY.
“I think people probably assumed we were going to extend the offer again because we actually said the last extension was unlikely to be final. So we did not expect to get a surge of acceptances in the days leading up to yesterday.
“We are quite happy to keep plodding along and increase our holdings as we go, until we get to a point where it completely dries up.”
Rival bidder Avoca Resources acquired a 44.85% stake in Dioro after its offer closed on 19 August, becoming the major shareholder.
“We would like to be optimistic and say we would be getting up close to where Avoca is,” Gordon said.
“But that will depend on where our share price is, where Dioro’s share price is and individual shareholder’s decisions about where the company is heading.
“A lot of the Dioro minority shareholders are now in that position and we are hoping that they will roll into our bid.”
Gordon hopes that a planned production start-up at the company’s Wattle Dam mine this month will give the company a significant overcall and boosts its share price.
Dioro’s independent directors urged shareholders to reject the Ramelius bid in October.
In a target statement, the directors said the merger was unlikely to succeed; Dioro’s gold assets were more valuable than Ramelius’; and shareholders would lose an entitlement to Capital Gains Tax rollover relief.