The board of gold company Explaurum has urged shareholders to accept a revised takeover offer from Ramelius Resources, overriding a recently approved investment by Alkane Resources.
The deal would have given Alkane control of a 12.2 per cent interest in the company (12 cents per share) and was unanimously approved by Explaurum’s board until Ramelius returned with its superior offer.
Ramelius, meanwhile, revised its initial takeover offer from September of one company share for every four Explaurum shares, stating that Explaurum shareholders will now receive an additional 2 cents for every share held in Explaurum. Ramelius has declared the offer unconditional.
Ramelius made an initial scrip offer for Explaurum in September for $59.2 million at 12.3 cents per share, representing a 66.2 per cent premium on Explaurum’s last closing price before the offer was made (7.4 cents).
Explaurum responded to Ramelius’ initial offer negatively, advising shareholders to take no action, but has now reversed its recommendation, stating in a company statement that shareholders should “accept the improved offer, in the absence of a superior proposal”.
Ramelius has so far received acceptances equivalent to 29.68 per cent of Explaurum.
Ramelius’ primary interest in the explorer is its 90 per cent-owned Tampia Hill gold project near Narembeen, Western Australia.
It would add Tampia Hill to an existing WA gold portfolio that includes the Mt Magnet, Edna May and Vivien mines.
Ramelius is also in the process of finalising the purchase of Black Oak Minerals’ Marda gold project, which will support Edna May’s processing plant.
Tampia Hill hosts an initial probable ore reserve of 7.2 million tonnes at an impressive grade of 2.09 grams of gold per tonne for 485,000 ounces of contained gold.