Ramelius makes offer for Dioro Exploration
miningweekly.com
By: Esmarie Swanepoel
30th July 2009
JOHANNESBURG (miningweekly.com) – ASX-listed gold producer and nickel explorer Ramelius Resources has made an A$92-million conditional offer for fellow-Australian company Dioro Exploration.
The offer came amid an all-share takeover bid by larger rival Avoca Resources, which currently held a 21,61% stake in Dioro. Avoca had on Wednesday again increased its offer for Dioro to one Avoca share or every 2,3 Dioro shares held.
Toronto-listed gold and copper miner Northgate Minerals had also entered into talks with Dioro last week, but said on Wednesday that it had terminated discussions regarding a potential transaction.
The Ramelius offer represented a premium of 40% to the implied value of the current Avoca offer, 48% to the three month volume weighted average price, and a 153% premium to the last traded prices before the Avoca offer.
Under the offer, Ramelius was offering two of its own shares for every one Dioro share held. If Ramelius acquired 100% of Dioro’s shares, Dioro shareholders would hold about 45% of the merged entity, with Ramelius shareholders holding the balance.
The company said that the merged entity would bring together two of Australia’s most promising gold developers into a single entity that would make it one of the highest-grade miners in the Eastern goldfields of Western Australia.
The offer from Ramelius was subject to certain conditions, including a 50,1% minimum acceptance condition.
Before the Ramelius offer, Dioro directors had unanimously recommended shareholders to accept the increased offer from Avoca, in the absence off a superior offer. |
