Ramelius Resources, the operator of the Mount Magnet gold mine, is expanding with an unconditional buyout offer for Musgrave Minerals, which is developing a project in the same region in Western Australia.
It comes for Ramelius following its recent integration of Breaker Resources and its Lake Roe gold project near Kalgoorlie following a $130.7 million takeover of that company.
Ramelius currently has a relevant interest in Musgrave of 47.36%, with the buyout open until to 7.00pm Sydney time on Friday, 15 September 2023.
The Musgrave directors have unanimously recommended to its shareholders to take the deal.
Musgrave shareholders are reminded that Ramelius’ Offer of 1 Ramelius share for every 4.21 Musgrave shares held plus $0.04 cash per Musgrave share is the Company’s best and final offer and will not be increased unless there is a Competing Proposal. This means that Ramelius will not increase its Offer Consideration further, but it reserves the right to do so if a Competing Proposal for Musgrave is publicly announced.
Ramelius has extended the Offer period to 7.00pm Sydney time on Friday 15 September to provide remaining Musgrave shareholders time to accept the Offer. There is no guarantee the Offer will be extended beyond this date unless required to by law.
As announced to ASX earlier today, Ramelius has declared a fully franked dividend of 2.0 cents.
Ramelius owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia and Penny gold mines, all of which are located in Western Australia. Ore from the high-grade Penny underground mine is hauled to the Mt Magnet processing plant, where it is blended with ore from both underground and open pit sources at Mt Magnet.
The Edna May operation is currently processing high grade underground ore from the adjacent underground mine as well as ore from the satellite Marda and Tampia open pit mines. The Symes project has recently commenced early works with ore planned to be hauled to the Edna May processing plant in FY24.
In January 2022, Ramelius completed the take-over of Apollo Consolidated Limited, taking 100% ownership of the Lake Rebecca Gold Project, now called the Rebecca Gold Project and shown on the map as Rebecca. In May 2023, Ramelius moved to compulsory acquire the remaining shares in Breaker Resources NL that it did not already own. Ramelius now has 100% ownership of Breaker and the Roe Gold Project, just 50km from Rebecca.