Explaurum’s shares suspended on ASX following the compulsory acquisition by Ramelius

Metals and mining sector company Explaurum Limited (ASX: EXU) gets close to its de-listing process following the takeover by Ramelius Resources.

On 5 March 2019, the shares of Explaurum Limited were suspended from quotation on the Australian Securities Exchange with immediate effect after the dispatch of compulsory acquisition notices by Ramelius Resources Limited. The stock last traded at $0.170 with a market capitalisation of $86.82 million.

The compulsory acquisition notice was reportedly sent to all the shareholders of Explaurum who did not accept the Ramelius’ offer prior to the close, i.e., 22 February 2019. As per the previous announcement, these shareholders will not be entitled to get the offer consideration until after the mandatory acquisition process, which is likely to take more than a month post the closure of Offer period.

This is in reference to the off-market takeover bid placed by the ASX-listed gold miner Ramelius Resources Limited (ASX: RMS) to acquire all of the ordinary shares of Explaurum Limited. The purchase consideration was fixed at an exchange ratio of 1 Ramelius share for every 4 Explaurum shares plus the cash component of $0.02 per share.

As at 25 February 2019, Ramelius held a relevant equity interest of 95.58% in Explaurum, representing the shareholding over and above the threshold of 90%. The company is therefore entitled to compulsorily acquire the balance, subsequently leading to the removal of Explaurum from the official list of Australian Securities Exchange.

In the December quarterly report, Explaurum announced that the strike length of the high-grade Mace supergene gold zone increased to almost double, i.e., to over 1,100m, and remaining open to the west. Further, the Mineral Resource on inferred category basis was estimated to 400k tonnes @1.4 g/t Au with the contained gold of 20koz.

Moreover, in Anomaly 8 Exploration Drilling, the company discovered a third new zone of bedrock gold mineralisation in the central part of Anomaly 8. Even the anomalous gold mineralisation was continued to be intersected along strike from the recent gold intersections at both the Spartacus and Stiletto prospects, told Explaurum.

The company intends to undertake a major follow up exploration RC drilling program scheduled to start immediately after the completion of harvesting, which will continue through the summer break.

With respect to Tampia project update, the Group confirmed the pre-tax NPV of approximately A$156 million and pre-tax IRR of approximately 70%. Initial capital expenditure to commercial production of about A$111 million with estimated average C1 operating cost of A$825/oz and all-in-sustaining-cost (AISC) of A$917/oz. The Group moreover received the positive results from Tampia infill drilling including the intersection of additional, smaller zones of gold mineralisation within the existing Tampia Resource. The highest grade sample intersected in the Tampia resource was returned with 1m at 1,440 g/t Au from 10m in the latest infill drilling.

Over the past 12 months, EXU stock price has gone up by 54.55% including the massive upside change of 91.01% in the past three months.


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