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Ramelius still eager to add to portfolio

8th August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Ramelius Resources is still on the look-out for acquisition opportunities, despite having completed nearly seven transactions over the last six years.

Ramelius is in the midst of a takeover deal with fellow-listed Musgrave Resources, offering one of its own shares for every 4.21 Musgrave shares held, as well as a 4c-a-share cash payment.

By Tuesday, the gold miner’s share in the takeover target had reached 29.11%. The Musgrave board has urged shareholders to accept the offer, which will close on August 18.

Musgrave’s Cue project is some 35 km from Ramelius’ Mt Magnet project, providing the opportunity for an integrated development scenario with enhanced commercial viability. The project would be incorporated into the Mt Magnet resource base, which stood at 3.2-million ounces as of the end of June 2022.

Shortly before launching the takeover offer for Musgrave, Ramelius completed the acquisition of ASX-listed Breaker Resources, which it had acquired in an all-scrip off-market takeover offer, with Breaker shareholders receiving one Ramelius share for every 2.82 Breaker shares held.

The Breaker deal allowed Ramelius to consolidate the Rebecca project, acquired in 2022, with Breaker’s Lake Roe project.

“There is a definite appetite for consolidation, and we are playing our part in that,” said Ramelius MD Mark Zeptner on the sidelines of the Diggers & Dealers conference.

“We have been pretty clear that we are looking for a third leg to the stool, so something bigger. But we have become quite adept at the bolt-on to the existing and to greenfield acquisitions, but we are still keen for bigger operations. If I had a choice, I would pick that third asset, rather than another bolt-on.

“But if it is a bolt-on that makes money for shareholders, and makes sense, I just have to do it,” Zeptner said.

Edited by Creamer Media Reporter

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