Ramelius and Spectrum have entered into a takeover agreement, where Ramelius will acquire the issued and outstanding shares in Spectrum.
Ramelius Resources (ASX:RMS,OTC Pink:RMLRF) and Spectrum Metals (ASX:SPX) announced that they have entered into a bid implementation agreement, pursuant to which Ramelius will offer to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own under the terms of an off-market takeover offer.
Highlights are as follows:
- Ramelius to acquire Spectrum Metals, owner of the high-grade Penny West gold project
- Penny West is one of the highest-grade undeveloped gold assets in Australia with a gold resource currently
of 799,000 tonnes at 13.8 grams per tonne (g/t) for 355,500 ounces
- Cash and scrip offer of AU$0.152 per Spectrum share, a 52 percent premium to Spectrum’s last closing price
- Shareholders of both companies to benefit from significant synergies between Penny West and Ramelius’
Mt Magnet operation
- Ramelius has financial capacity and operational expertise to continue to explore and to develop the Penny West gold project
- Spectrum directors unanimously recommend that Spectrum shareholders accept the offer
- Spectrum directors intend to accept the offer for all their shares
Mark Zeptner, managing director, commented:
There is clear logic in the combination of Spectrum’s assets with Ramelius’ WA operations. After the successful acquisition of the Marda and Tampia Hill gold projects in 2019, Ramelius is focussed on building on its growth strategy to extend mine life and maximise the value of existing infrastructure in its portfolio. This compelling offer is the next step in that growth strategy and is expected to provide significant benefits to both
Spectrum and Ramelius shareholders.