Ramelius Resources (ASX: RMS) was listed on the ASX in March 2003 to explore gold and nickel projects Goldfields of Western Australia.
The Company discovered the Wattle Dam Gold Mine in 2005 and began mining the deposit in March 2006. In 2007 the Company purchased the Burbanks milling facility for $2.8 million to treat the high grade Wattle Dam ore.
Ramelius Resources ups the ante in takeover for Dioro Exploration, waives key condition
Cashed up gold miner, Ramelius Resources (ASX: RMS) has waived all conditions, apart from regulatory approval, in its takeover offer for WA goldfields neighbour, Dioro Exploration (ASX: DIO).
The previous key condition requiring a 50.1% minimum acceptance condition from Dioro shareholders has been waived.
Ramelius' offer values Dioro at $1.02 per share, relative to a Dioro share price of 78.5 cents. The bid values Dioro at $93.4 million. This tops the offer for Dioro from Avoca Resources of 75 cents per share.
Clearly, the Ramelius offer is at a 36% premium to the Avoca Offer and a 30% premium to the last traded Dioro share price. Either way it has been a bonanza for Dioro shareholders with the share price up a whopping 158% before the takeover offer was announced in April.
Ramelius Chairman Robert Kennedy said, “there was obviously a very strong reluctance by Dioro shareholders to accept Avoca’s overtures – with barely half a percent of Dioro’s total shareholders in the past week, moving to accept the Avoca bid.”
The company's underground gold mines are in close proximity with considerable long life potential from further resource definition and exploration.
A merger of Ramelius and Dioro would seem to make some sense – two high grade gold miners come together into a single high profile entity.
Ramelius’ Chief Executive Officer, Mr Ian Gordon, said a merged Ramelius-Dioro could be a new force in Australian gold mining with high grade assets, strong margins, proven production track record and “huge potential” for further exploration upside.
Ramelius has $26 million in the bank, is debt free, is forecasting strong near-term cash flow from our imminent start to underground mining at Wattle Dam after a successful openpit campaign. It would pay down Dioro debt.
With immediate cash flow generated from combined assets – Wattle Dam mine and Dioro’s 49%-owned Frog’s Leg gold mine - with highly transparent production, cash cost, milling synergies and future exploration growth.”
