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Ramelius Resources Limited (ASX:RMS) (Ramelius) and Breaker Resources NL (ASX:BRB) (Breaker) are pleased to announce that they have entered into a Bid Implementation Agreement (BIA), pursuant to which Ramelius will offer to acquire all the issued ordinary shares of Breaker by way of an all-scrip off-market takeover offer (the Offer).
Highlights
- Ramelius to acquire Breaker Resources NL (Breaker), 100% owner of the Lake Roe Gold Project (Lake Roe) in Western Australia, via a recommended all-scrip off-market takeover offer (Offer)
- Located in Australia’s premier gold province and with a current total Mineral Resource estimate of 32 Mt @ 1.6 g/t for 1.7 million ounces1, Lake Roe provides additional scale through regional consolidation with Ramelius’ Rebecca Project2, boasting almost 3 million ounces in combined Mineral Resources, to support a potential new production centre
- Ramelius, a top 10 Australian gold producer, has the financial capacity, operational experience and exploration expertise to continue expanding the existing Mineral Resource and to develop Lake Roe, in order to maximise the value of the asset for both sets of shareholders
- Breaker shareholders to receive an implied Offer price of $0.403 per share (Offer Price), equating to 1 Ramelius share for every 2.82 Breaker shares held. This Offer Price represents premiums of:
- 41.0% to Breaker’s 3-day VWAP of $0.284 per share;
- 41.7% to Breaker’s 10-day VWAP of $0.282 per share;
- 41.5% to Breaker’s 30-day VWAP of $0.283 per share; and
- 30.5% to Breaker’s 90-day VWAP of $0.307 per share.
- The Offer Price implies a total undiluted equity value for Breaker of $130.7 million4
- Breaker’s Directors unanimously recommend Breaker shareholders accept the Offer, in the absence of a superior offer. Furthermore, all Breaker Directors have made (and consented to its inclusion herein) Statements of Intent to accept the Offer for all the shares they own or control (representing ~4% of Breaker’s issued shares5), in the absence of a superior offer
- Breaker major shareholders, Electrum and Paulson, each representing 9.95% of Breaker shares therefore accounting for 19.92% of Breaker, have signed pre-bid acceptance agreements to accept within 5 days of the Offer opening, subject to a superior offer
- The Offer is conditional upon achieving more than 50.1% acceptanceRamelius will host a conference call at 8:00am AWST / 10:00am AEST/ 11:00am AEDT on Monday 20th March 2023. To listen in live, please click on the link below and register your details: https://s1.c-conf.com/diamondpass/10029687-b1k7i0.html
Under the terms of the Offer, Breaker Shareholders will receive 1 Ramelius share for every 2.82 Breaker shares held (Offer Consideration). The Offer Consideration values each Breaker share at $0.40 (Offer Price), based on the 3-day volume weighted average price (VWAP) of Ramelius shares up to and including 17 March 2023 of $1.127, and implies a total undiluted equity value for Breaker of approximately $130.7 million.
The options held by the Breaker Option holders will, if not exercised into ordinary shares before the Offer closes, will be acquired via a Private Treaty with Ramelius where such options will be valued using traditional option valuation methodologies.
The premiums represented by the Offer Price against Breaker’s 3 day and other historical VWAPs are shown in Figure 1 below.
Figure 1: Offer Premiums for Breaker Shareholders
Support from Breaker Board and Major Shareholders
Breaker’s Directors have unanimously recommended that Breaker shareholders accept the Offer, in the absence of a superior offer. Furthermore, Breaker Directors have consented to Statements of Intent to accept the Offer for all the shares they own or control (representing ~4% of Breaker’s issued shares6), in the absence of a superior offer.
Breaker’s two largest shareholders, Electrum Strategic Opportunities Fund and Paulson & Co, with a combined shareholding of approximately 19.92% have both supported the offer by signing pre-bid agreements to accept within 5 business days of the Offer opening, in the absence of a superior offer.
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This article includes content from Breaker Resources NL, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
BRB:AU
Crown Prince Maiden Ore Reserve & Feasibility Study Results
HIGHLIGHTS
- New Murchison Gold Limited (ASX:NMG) is pleased to announce the results of a Feasibility Study into the Crown Prince Gold Deposit (Crown Prince Feasibility Study) in WA which outlines pre-tax cash flow of $226m (undiscounted) over a period of 30 months at current spot gold prices (A$4,385/oz).
- Capital expenditure required to commence production of $5.4m is very low relative to peer gold projects given the Company’s Ore Purchase Agreement (OPA) with Westgold Resources Limited (WGX or Westgold).
- NMG is also expecting to be able to utilise its substantial tax loss position (30-Sep-24: $84.4m in accumulated losses, $76.4m usable)1 to offset tax liabilities on initial pre-tax profits from Crown Prince.
- 140koz contained ounces of gold are to be mined and trucked to WGX over 30-month open pit.
- Upside in potential underground mine below the pit, which will be studied in 2025.
- NMG’s production plan is based on Ore Reserves only. Contained ounce production profiles in the study comprise only that material delineated in Ore Reserves (estimated using a A$3,250 /oz gold price assumption) for the project.
- Commencement of mining is expected in June 2025 with first ore sales scheduled in August 2025. Mining and environmental approval documentation was submitted to relevant regulators and counterparties in late 2024.
- The Crown Prince Feasibility Study (FS) was completed in January 2025 and demonstrates sound financial returns based on:
- An updated Mineral Resource Estimate (MRE) of 2.205Mt @ 3.Gg/t for 27Gkoz2
- An Ore Reserve estimate for Crown Prince Project of 0.8G million tonnes @ 4.8g/t gold (Au) containing 140,000oz Au.
- Crown Prince ore sold at the mine gate under an Ore Purchase Agreement (OPA) for haulage to Westgold’s Bluebird Mill south of Meekatharra.
- Production from the Crown Prince Open Pit only, which is covered by the granted mining leases.
- Next steps to expand the resource base are to assess Crown Prince underground potential and other deposits including Lydia and New Murchison King. These were not considered in the FS.
- The FS Life of Mine (LOM) production schedule metrics are shown on Table 1. Financial results with sensitivity to gold price, are shown in Table 2. Summary of LOM Cash Flow is shown in Figure 1.
Table 1: Production Schedule Metrics – Crown Prince Open Pit
Table 2: Financial Results (AUD)
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This article includes content from New Murchison Gold Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
December 2024 Quarterly Activities Report & Appendix 5B
Key Developments & Exploration Progress
- Major untested conductive and phase anomaly were both identified proximal to each other within Altair’s Olympic Domain Project which is highly prospective for IOCG style mineralisation.1
- The newly uncovered conductive and phase anomaly body1 located ~5km Northwest of BHP Oak Dam Deposit (1.34Bt @ 0.66% Cu & 0.33g/t Au)2
- Ovoid conductive anomalous body shares parallels to those of Khamsin and Carrapateena deposits, with a follow up with TEM survey that can precisely identify the depth of the body for drill targeting1
- Previous drilling appears to have narrowly missed the newly identified phase anomaly with impressive results on the mineralised halo surrounding the target anomaly1, 5, 6, 7:
- HWDD08: 115m @ 0.32% CuEq from 1040m (Drilled ~2km North of main phase anomaly)
- HWD1: 61m @ 0.33% CuEq from 901m
- HWDD05: 115m @ 0.62% CuEq from 1095m (Drilled ~700m North of conductive high)
- HWDD05W1: 70m @ 0.67% CuEq from 962m
- Altair executive team continued reviewing multiple complimentary business opportunities in the resources sector globally.
OLYMPIC DOMAIN PROJECT
The Olympic Domain Project consists of three prospects (Horse Well, Pernatty C, Lake Torrens) situated in one of the largest copper provinces in the world – the Gawler Craton, which hosts mega-IOCG discoveries such as Oak Dam West, Olympic Dam, Prominent Hill and Carrapateena.
Figure 1: Horse Well Total Magnetic Intensity (TMI) overlaid with TMI variable reduction to pole (VRTP) 2nd derivative - SARIG. Shown are two of Altair’s key high-priority magnetic targets1.
The Horse-Well Project represents a strategic opportunity for Altair, being the only project held by a junior exploration company in the vicinity (merely 2km away) of BHP’s Oak Dam West discovery with a recently defined inferred resource of 1.34Bt @ 0.66% Cu and 0.33g/t Au, including 220Mt @ 1.96% Cu and 0.68g/t Au2. The Horse-Well Project consists of EL’s 6122 and 6183 spanning a large area of 147km2 with initial drill results within geophysical anomalies having returned very positive levels of Cu-Au mineralisation associated with IOCG style alteration, with the possibility that these represent intersections peripheral to major targets.
During the quarter, Geophysical Audio Magnetotelluric (AMT) data acquired across Horse-Well in 2019 reprocessing was finalised as part of Altair’s strategy for the next step in targeted work plans. The 3D forward geophysics model has defined major conductive and phase anomalous bodies which has shown significant scale to host a potential large IOCG deposit which is analogous to the genesis of the Oak Dam Deposit.
The AMT data model includes 220 different sounding stations covering an area of 146km2, with conductivity and phase readings across a spectrum of 90 frequencies at each sounding station with additional repeat soundings for both Conductivity and Phase, leading to a model formed from analysing ~40,000 data points. For further detail see announcement dated 4th of December 20241
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This article includes content from Altair Minerals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
