JOHANNESBURG (miningweekly.com) – ASX-listed explorer Dioro on Wednesday advised its shareholders to reject the takeover offer made by gold producer Ramelius Resources.

Ramelius had on Tuesday declared its offer unconditional and was offering Dioro shareholders two of its own shares for every one Dioro share held. If Ramelius acquired 100% of Dioro’s shares, Dioro shareholders would hold about 45% of the merged entity, with Ramelius shareholders holding the balance.

Dioro chairperson Ted Grobicki said in a statement that a merger between the companies was unlikely to occur as Dioro’s major shareholder, Avoca Resources, which currently held a 44,8% stake in Dioro, has stated publicly that it would not accept the Ramelius offer.

Grobicki further noted that Dioro’s gold assets were also more valuable then the Ramelius gold assets, with its entire mineral resources an estimated 23 times larger than the Ramelius assets. Dioro was also achieving record production results, having produced 21 353 oz of gold during the quarter ended August.

“The independent directors believe that the value and quality of Dioro’s gold assets are superior to those of Ramelius and therefore recommend that Dioro shareholders reject the Ramelius offer.”

Grobicki added that the value of its portfolio was also made evident by the separate offers made by Avoca Resources and Ramelius, as well as by negotiations with third parties.

“The board and management of Dioro will be working hard in the future to maximise the value of these assets for the benefit of all shareholders,” he stated.

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