Gold, News, Ramelius Resources, Takeover bids

Ramelius moves toward full acquisition of Breaker

Ramelius Resources has withstood many impacts to record an underlying net profit after tax of $73 million for FY22.

Gold producer Ramelius Resources has now acquired 90 per cent relevant interest in Breaker Resources.

As a result, Ramelius will now move towards compulsory acquisition of all the remaining Breaker shares.

As payment for the acquisition, Breaker shareholders received an implied offer price of $0.40 per share, equating to one Ramelius share for every 2.82 Breaker shares in March 2023.

The offer price represented a premium of 41.5 per cent to Breaker’s 30-day volume-weighted average price, totalling an equity value of 130.7 million.

Ramelius declared this offer unconditional and the Breaker’s board unanimously recommended that its shareholders who had not accepted the offer yet to do.

As Ramelius acquires a relevant interest of 90 per cent in Breaker Resources, it has urged all remaining Breaker shareholders to accept the offer without delay to receive consideration within ten business days.

The company will use the compulsory acquisition powers under the Corporations Act and will seek to acquire all the remaining shares of Breaker.

The offer will close on May 16 at 7pm (AEST) and the offer will not be extended further.

Breaker shareholders who have not accepted the offer before this closing date will not receive the offer consideration until after the compulsory acquisition process is completed, which Ramelius said is likely to be longer than one month after the offer closes.

Ramelius owns and operates many Western Australia gold mines, such as Mt Magnet, Edna May, Marda, Tampia and the Penny gold mines.

The takeover of Breaker is not the first acquisition Ramelius has completed. In January 2022, it had completed a take-over of Apollo Consolidated, taking 100 per cent ownership of the Lake Rebecca gold project, now called the Rebecca gold project.

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