- Billion-dollar gold miner Ramelius Resources (RMS) launches a $131 million takeover bid for Perth-based explorer Breaker Resources (BRB)
- Ramelius is eyeing control of the 1.7-million-ounce Lake Roe gold project near Kalgoorlie
- Under the potential deal, Breaker shareholders have been offered one RMS share for every 2.82 BRB shares held — valuing BRB shares at 40 cents a share
- Breaker’s Lake Roe project neighbours Ramelius’ Rebecca project, and Breaker CEO Sam Smith says the merger is a “logical and sensible combination of assets”
- Breaker shares are unchanged at 29 cents while Ramelius shares are trading at $1.13 at 11:11 am AEDT
Ramelius Resources (RMS) has launched a $131 million takeover bid for Perth-based explorer Breaker Resources (BRB).
Through the all-scrip offer, Ramelius is eyeing control of the 1.7-million-once Lake Roe gold project near Kalgoorlie.
Ramelius — a gold producer with a $1 billion market cap — has offered Breaker shareholders one RMS share for every 2.82 BRB shares held.
This prices BRB shares at 40 cents a pop — a neat 41 per cent premium to Breaker’s three-day volume-weighted average price (VWAP) and a 30.5 per cent premium to its 90-day VWAP.
With the RMS offer implying an undiluted equity value of $130.7 million for Breaker, the BRB board has unanimously recommended shareholders accept the bid in the absence of a superior offer.
Further, major Breaker shareholders Electrum and Paulson — who collectively own 19.92 per cent of the company — have signed pre-bid acceptance agreements to accept Ramelius’ offer within five days of opening.
Breaker’s Lake Roe project neighbours Ramelius’ Rebecca project, and Breaker CEO Sam Smith said the merger was a “logical and sensible combination of assets”.
“For Breaker shareholders to swap their Breaker shares for Ramelius shares at an attractive premium and retain full exposure to the upside at Lake Roe is compelling,” Mr Smith said.
“Further, the opportunity for Breaker shareholders to fortify their interests in Lake Roe and diversify their interests, and their opportunities, by joining with one of Australia’s leading and profitable gold producers is compelling and rewarding for our shareholders.”
Investors have been slow to respond to today’s takeover news. Breaker shares were unchanged at 29 cents while Ramelius shares were trading at $1.13 at 11:11 am AEDT.