PERTH (miningweekly.com) – Gold miner Ramelius Resources has improved its off-market takeover offer for fellow-listed Apollo Consolidated, after a competing bid emerged from Gold Road 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 on Monday improved on its initial offer of 34c a share in cash along with 0.1375 Ramelius shares for each Apollo share held, to 34c a share in cash and 0.1778 Ramelius shares for each Apollo shares held, increasing the offer value from 56c a share to 62c a share.
Ramelius’ revised offer is unconditional and has been unanimously recommended by the Apollo directors, in the absence of a superior offer.
Furthermore, Ramelius has also entered into binding agreements with Apollo’s board and a substantial shareholder, to immediately accept the revised offer in relation to their shares, resulting in Ramelius acquiring a 19.9% interest in the takeover target.
Apollo told shareholders that in addition to attractive premiums, the revised offer provided certain cash consideration and optionality in relation to the liquid script consideration, and reduced the development risk associated with Apollo’s Lake Rebecca project, while avoiding potential future equity dilution during the development phase of the project.
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.
The Ramelius offer opened on Monday.