Ramelius Resources Issues 10th Supplementary Target’s Statement For The Acquisition Of Explaurum

RMS

Ramelius Resources Limited (ASX: RMS), domiciled in Perth, Australia, is a metal and mining company engaged in the production of gold since 2006 through its Wattle Dam, located near Kalgoorlie, which was operational from 2006 to 2013. The company is currently working over Edna May Gold Mine, Mt Magnet Gold Mine, and Vivien Gold Mine, all of them are based in Australia. The company is also working on four development projects (three on Mt Magnet and one on Edna May) and five exploration projects located in Australia and USA.

On 10 September 2018, RMS proposed an off-market offer of an unsolicited and conditional takeover of Explaurum Limited (ASX: EXU), another metal and mining company in Brisbane, Australia, for an initial offer of 1 RMS share for every 4 EXU shares , EXU shares being valued at A$0.123 each with a target statement released on 12 October 2018. [optin-monster-shortcode id=”swikrbu1d9j9aq0o4cko”]

It was initially rejected by EXU, and RMS later provided five supplementary bidder’s statement and eight supplementary target’s statements. A new offer was proposed on 18 December 2018, and the EXU’s Directors accepted the new offer. The new offer was increased by 2 cents cash per EXU shares in addition to the initial offer of 1 RMS share for every 4 EXU shares.

On 17 January 2019, the BDO Corporate Finance Ltd provided its independent expert report which stated the offer to be fair and reasonable. It values EXU’s shares at 12.3 cents to 19.0 cents whereas RMS offered 12.0 cents to 15.5 cents per share.

On 18 January 2019, the company released an announcement which stated that RMS owned 79.2% stake in EXU and extended the offer to 22 February 2019.

Today, the company has issued the tenth supplementary regarding Target’s statement considering the RMS’s improved offer along with the Independent Expert’s Report which concluded the new offer to be both fair and reasonable. This supplementary, further, has been approved by a resolution passed by the Directors of EXU.

The company recently provided an update over the drilling at the Stellar open pit in Mt. Magnet. 24 new RC holes were drilled on a closely spaced pattern of around 5m X 5m. It reported high-grade intercepts at 34m at 10.7 g/t gold from 22m, 12m at 42.7 g/t gold from 17m, 18m at 38.2 g/t gold from 16m, and many more.

Looking at Ramelius Resources Limited’s and Explaurum Limited’s stock performance and the return they have posted over the last few months, RMS has generated a positive return of 10.87% over the past three months whereas EXU has generated 25% positive return. RMS is currently trading at $0.515 (as on 23 January 2019) with a surge of 0.98% during the day’s performance, but the EXU has plunged by 6.67% following the news and is currently trading at A$0.140. RMS has ~612.77 million shares outstanding with the market cap of circa A$312.51 million. EXU has ~498.22 million shares outstanding with the market cap of circa A$74.73 million.


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