PERTH (miningweekly.com) – Gold miner Gold Road Resources has made an unconditional offmarket takeover offer for fellow-listed Apollo Consolidated, which earlier this week received a takeover offer from gold miner Ramelius Resources.

Gold Road was offering 56c a share in cash for each Apollo share held, implying an equity value of A$166-million to Apollo.

Ramelius for its part is offering Apollo shareholders 34c a share in cash along with 0.1375 Ramelius shares for each Apollo share held, valuing Apollo’s shares at 56c each, based on the three-day volume weighted average share price of Ramelius shares up to October 15.

The Ramelius offer is subject to a 90% acceptance condition, as well as regulatory approvals.

Gold Road, which holds a 19.9% interest in Apollo’s issued share capital, said on Thursday that its offer represented a superior proposal to the highly conditional Ramelius offer, with the minimum acceptance condition now incapable of satisfaction.

Gold Road told shareholders that its offer for Apollo aligned with the company’s strategy to grow and diversify its growth pipeline with high quality, low risk opportunities in tier one jurisdictions.

“Given a successful outcome, Gold Road intends to undertake continued exploration and studies designed to advance the Lake Rebecca Project. Gold Road has the balance sheet and capabilities to grow resources at Lake Rebecca and develop new mining operations. These activities are exactly aligned with Gold Road’s core competencies, as demonstrated by the discovery of the Gruyere deposit, subsequent resource growth and definition and successful mine construction, commissioning and ramp-up,” the company said in a statement.

“Gold Road’s geological assessment has highlighted a number of as yet untested targets, and Gold Road’s exploration team is experienced at exploring beneath transported cover in the region.

“This strategic acquisition will complement and enhance Gold Road’s existing exploration pipeline by providing an advanced exploration project and diversifying the company’s resource base, aligning with the company’s objective of developing a second operating mine.”

Apollo’s Lake Rebecca project has a mineral resource estimate of 29.1-million tonnes, at 1.2 g/t gold for 1.1-million ounces of contained gold.

Apollo has urged shareholders not to take any action with regards to the Gold Road offer, as the company is preparing a formal response.