Hopes fade on Ramelius’ takeover bid
Gold miner Ramelius Resources’ bid to wrestle control of junior explorer Explaurum has received another nail in its coffin, with the John Lawton-led company recommending shareholders turn the allscrip offer down in favour of an $8 million investment from Alkane Resources.
Mark Zeptner’s Ramelius had hoped to snare Explaurum and its 485,000 ounce Tampia Hill gold project near Narembeen in the Wheatbelt.
It would have left open the option to develop the mine as base-load open pit feed for its Edna May gold mine near Westonia, about 130km to the north-east of Tampia.
Ramelius has been dealt a series of blows in its attempts to convince Explaurum shareholders the 1-for-4 share offer is a good deal.
Last week the company ended due diligence at Tampia, telling the market it would not stump up $24 million in cash to sweeten the deal and get it over the line.
This week an independent expert’s report from accounting firm BDO chalked up another loss for Ramelius, declaring the original offer was neither fair nor reasonable.
Since launching the bid in September, Ramelius has struggled to make headway and holds just 4.96 per cent of its target.