Share Dilution

Ramelius increases his offer for Apollo

PERTH (miningweekly.com) – Gold miner Ramelius Resources has improved its off-market takeover offer for listed company Apollo Consolidated after a competing offer emerged from Gold Road Resources.

Gold Road was offering 56c a cash share for each Apollo share held, implying a net worth of A $ 166 million to Apollo.

Ramelius on Monday upgraded its initial offering from 34c per share in cash with 0.1375 Ramelius share for each Apollo share held, to 34c per share in cash and 0.1778 Ramelius share for each Apollo share held, increasing the value of the offer from 56c per share to 62c per share.

Ramelius’ revised offer is unconditional and was unanimously recommended by the directors of Apollo, in the absence of a superior offer.

In addition, Ramelius also entered into binding agreements with Apollo’s board of directors and a major shareholder, to immediately accept the revised offer for their shares, which enabled Ramelius to acquire a stake of 19.9 % in the target of the repurchase.

Apollo told shareholders that in addition to the attractive premiums, the revised offer provided for some cash consideration and an option over the cash script consideration, and reduced the development risk associated with the Apollo Lake Rebecca Apollo project , while avoiding a possible future dilution of equity during the development phase of the project.

The Apollo 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 gold contained.

The Ramelius offer opened on Monday.


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