Gold Road Resources Enters Race for Apollo Consolidated

THE BOURSE WHISPERER: Gold Road Resources (ASX: GOR) declared its hand as it vies for the affections of Apollo Consolidated (ASX: AOP) shareholders with rival bidder Ramelius Resources (ASX: RMS).

Gold Road Resources has emerged with an unconditional off-market takeover offer of 56 cents cash per share for all the issued and outstanding ordinary shares in Apollo Consolidated.

Gold Road’s asserted its offer superior to the offer announced earlier this week by Ramelius saying it provides Apollo shareholders with a compelling opportunity to realise certain and near-term value for their shares at a price that represents the all-time highest price paid for an Apollo share.

What also emerged from the Gold Road announcement is that it has been in discussion with its target leading up to making the offer.

“Gold Road makes an unconditional off-market takeover offer for Apollo Consolidated Ltd following prior engagement with Apollo and due diligence access,” the company revealed.

Like its rival in Ramelius before it, Gold Road highlighted Apollo’s healthy bank balance of approx. $35 million and its flagship Lake Rebecca gold project, complete with a JORC compliant Mineral Resource of 29.1 million tonnes at 1.2 grams per tonne gold for 1.1 million ounces of gold, as the prize for any successful suitor.

“The Offer aligns with Gold Road’s strategy to grow and diversify its growth pipeline with high quality, low risk opportunities in tier one jurisdictions,” Gold Road explained.

“Given a successful outcome, Gold Road intends to undertake continued exploration and studies designed to advance the Lake Rebecca project.

“Gold Road has the balance sheet and capabilities to grow resources at Lake Rebecca and develop new mining operations.

“These activities are exactly aligned with Gold Road’s core competencies, as demonstrated by the discovery of the Gruyere deposit, subsequent resource growth and definition and successful mine construction, commissioning and ramp-up.

“Gold Road’s geological assessment has highlighted a number of as yet untested targets, and Gold Road’s exploration team is experienced at exploring beneath transported cover in the region.

“This strategic acquisition will complement and enhance Gold Road’s existing exploration pipeline by providing an advanced exploration project and diversifying the company’s resource base, aligning with the company’s objective of developing a second operating mine.”

Gold Road’s Bidder’s Statement was released this morning and was greeted with the traditional TAKE NO ACTION response from Apollo Consolidated.

Let the games begin.