PERTH (miningweekly.com) – Gold miner Ramelius Resources has increased its offer for fellow-listed Explaurum, by 2c a share in cash.

Ramelius is now offering Explaurum shareholders one of its own shares for every four Explaurum shares held, as well as 2c a share in cash for every Explaurum share held.

The new offer valued Explaurum shares at 13.4c each, and is a 57.6% premium to the last closing price of Explaurum shares, as well as a 11.7% premium to the subscription price of a transaction with ASX-listed Alkane Resources.

Explaurum has previously urged shareholders to reject the takeover offer from Ramelius in favour of a strategic investment by Alkane, which would see that company invest A$8-million in Explaurum for a 12.2% stake.

In addition to the share placement, Explaurum will also grant Alkane 53.4-million options, exercisable by November 2019, in two tranches, with the first tranche of 18.6-million options exercisable at 13c each, and the second tranche of 34.7-million options exercisable at 14c each.

If all options were to be exercised, Alkane’s share in Explaurum will increase to 19.96%.

Ramelius on Thursday said that its revised offer should fall within the independent expert’s valuation range of Explaurum, and should, therefore, be considered as fair and reasonable.

The independent expert had valued Explaurum shares at between 10.4c and 14.3c each.

“We see our improved offer as striking an ideal balance in our desire to provide value accretive returns to shareholders of both companies as we work towards the development of the Tampia project,” said Ramelius MD Mark Zeptner.

Explaurum had previously called into question Ramelius’ plans for the Tampia gold project, including the likelihood of the project being developed.

“We remain committed to carrying out a strategic review, typically over several months, using additional information from further drilling, metallurgical test work and on-the-ground assessments of exploration potential, before finalising the best economic option for the asset,” Zeptner said.

“We have received strong support from major shareholders of Explaurum and we are of the view that our offer represents an excellent outcome for both Explaurum and Ramelius shareholders.”