JOHANNESBURG (miningweekly.com) – ASX-listed gold producer and nickel explorer Ramelius Resources on Tuesday declared its offer for Dioro Exploration unconditional, after receiving the go-ahead from the Foreign Investment Review Board (FIRB) of Australia.

Ramelius required FIRB approval for the Dioro acquisition because a Canadian gold fund holds an interest of about 19% in Ramelius.

“Having obtained FIRB approval, our offer for Dioro shares is now unconditional and I urge Dioro shareholders to become part of a well capitalised, high grade gold miner with potential for substantial growth,” said Ramelius chairperson Robert Kennedy.

The Ramelius offer valued Dioro at around A$92-million, and came amid an all-share takeover bid by larger rival Avoca Resources, which currently held a 44,85% stake in Dioro.

The Ramelius offer represented a premium of 40% to the implied value of the current Avoca offer, 48% to the three month volume weighted average price, and a 153% premium to the last traded prices before the Avoca offer.

Under the offer, Ramelius was offering 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.

The company said that the merged entity would be one of the highest-grade miners in the Eastern goldfields of Western Australia.

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