- Ramelius Resources (RMS) makes an offer to purchase WA gold and copper explorer Apollo Consolidated (AOP)
- The company is looking at purchasing all Apollo’s shares in a deal that will put Apollo’s enterprise value at $128 million
- Under the offer, Apollo shareholders will receive 34 cents and 0.1375 of a Ramelius share for each Apollo share held, valuing Apollo shares at 56 cents each
- Apollo owns the Lake Rebecca Gold Project in Western Australia
- Ramelius is down 2.15 per cent and is trading at $1.59 per share, while Apollo is up 14.3 per cent at 52 cents each at 1:27 pm AEDT
Ramelius Resources (RMS) has made an offer to purchase WA gold and copper explorer Apollo Consolidated (AOP).
The company is looking at purchasing all Apollo’s shares in a deal that will put Apollo’s enterprise value at $128 million.
Under the offer, Apollo shareholders will receive 34 cents and 0.1375 of a Ramelius share for each Apollo share held, valuing Apollo shares at 56 cents each.
However, for the deal to be completed it will need shareholder approval.
The Apollo Board of Directors has unanimously recommended that Apollo shareholders accept the offer.
Notably, the directors have agreed to say yes to the deal, which represents 13.7 per cent of Apollo’s issued shares.
Apollo’s Managing Director, Nick Castleden, said the offer was an “excellent result” for the company’s shareholders.
“Ramelius brings excellent credentials in the business of taking new gold projects online and has ample experience, personnel and funding to take the project [Lake Rebecca] forward,” he said.
Apollo owns the Lake Rebecca Gold Project in Western Australia and has a current total mineral resource estimate of 29.1 million tonnes at 1.2 grams per tonne (g/t) for 1.1 million ounces.
Ramelius Managing Director Mark Zeptner said Lake Rebecca was a great opportunity for the company to grow its assets.
“The Apollo team has done an excellent job advancing Lake Rebecca to its current stage of development and has clearly demonstrated its potential for development into a high-quality gold mine in a tier-one gold mining jurisdiction,” Mr Zeptner said.
“Subject to the offer being successful, Ramelius is looking forward to ramping up the drilling program across the tenement package to expand the existing resource and ultimately developing Lake Rebecca into a cornerstone producing asset within our portfolio. Our strategic target for the project is to identify a pathway to a mine life of 10 years at a run rate of at least 100,000 ounces per annum.”
Further details on the offer will be sent to Apollo shareholders by October 29.
Ramelius is down 2.15 per cent and is trading at $1.59 per share, while Apollo is up 14.3 per cent at 52 cents each at 1:27 pm AEDT.