Ramelius Resources has made an improved takeover offer for the Australian gold exploration and development company Explaurum.
Under the terms of the revised offer, Ramelius will offer $0.02 cash per share to Explaurum shareholders. This adds to the original all-scrip offer of one Ramelius share for every four Explaurum shares held.
The improved offer values each Explaurum share at A$0.134.
Ramelius launched the original offer in September this year and presented it directly to Explaurum shareholders.
Explaurum rejected the offer at the time, saying it undervalued the company and its assets.
In October, Explaurum agreed a strategic investment deal with Alkane Resources, under which Alkane will invest A$8m in the company in return for a 12.2% interest.
The company urged its shareholders to reject Ramelius’ acquisition bid and accept the Alkane investment.
Ramelius is now claiming the support of around 14.3% of Explaurum shareholders.
Furthermore, the company has stated that it is willing to extend a finance facility to Explaurum to ensure solvency during bid process.
Ramelius Resources managing director Mark Zeptner said: “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.
“We remain committed to carrying out a strategic review, typically over several months, as opposed to several weeks, using additional information from further drilling, metallurgical test work and on-the-ground assessment of exploration potential, before finalising the best economic option for the asset.”
Ramelius owns three gold mines in Western Australia (WA), the Mt Magnet, Edna May and Vivien operations.
Explaurum operates the Tampia Hill project near Narembeen, 240km east of Perth in WA, which has 700,000 ounces of gold resources.