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Gold Road Resources Enters Race for Apollo Consolidated

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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.

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: perth@goldroad.com.au

 

Web: www.goldroad.com.au

 

Ramelius Resources Makes Welcome Advances for Apollo Consolidated Takeover

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) provided Apollo Consolidated (ASX: AOP) shareholders something to blow their morning coffee over by announcing a takeover bid.

Ramelius Resources reported entering into a Bid Implementation Agreement (BIA) with Apollo Consolidated that will result in the former acquiring all issued ordinary shares of the latter by way of an off-market takeover offer.

Under the terms of the offer, Apollo shareholders will receive cash consideration of 34 cents and 0.1375 Ramelius shares for each Apollo share held, valuing each Apollo share at 56 cents that, based on the 3 day volume weighted average price (VWAP) of Ramelius shares up to and including 15 October 2021 of $1.60, implies a total equity value for Apollo of approximately $163 million.

In response, the Apollo Consolidated Board of Directors unanimously recommended that Apollo shareholders accept the Offer, in the absence of a superior offer.

Ramelius’ takeover of Apollo makes sense when one considers Apollo’s primary asset being the 100 per cent-owned Lake Rebecca project in Western Australia, located just outside of Kalgoorlie.

Apollo holds approximately 160 square kilometres of granted tenure within a greenstone belt on the eastern margin of the Norseman-Wiluna Greenstone Belt.

This belt lies at the southern end of the Laverton Tectonic Zone, a regionally important structural corridor that hosts multiple major gold camps.

Apollo has taken Lake Rebecca to an attractive stage, with three main deposits currently defined, Rebecca, Duke and Duchess.

Rebecca hosts the high-grade Jennifer Lode and adjoining mineralised surface.

In April 2021, Apollo announced an updated JORC Mineral Resource Estimate (MRE) for the project of:

29.1 million tonnes at 1.2 grams per tonne gold for 1.1 million ounces of gold, 74 per cent of which is in an Indicated category.

Ramelius owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia and Penny gold mines, all in Western Australia.

Ore from the high-grade Vivien underground mine, located near Leinster, is hauled to the Mt Magnet processing plant where it is blended with ore from both underground and open pit sources at Mt Magnet.

The Penny project is currently under development with first ore scheduled for late FY22.

Ramelius sees Lake Rebecca as a highly attractive opportunity to ultimately develop a greenfields mining operation in one of the world’s premier gold mining jurisdictions.

The project’s existing 1.1 million ounce Resource provides a strong platform from which Ramelius can pursue the commercial development of a mining operation which fits its criteria in terms of scale and asset quality.

The Lake Rebecca tenement package offers the potential to continue expanding the existing MRE, with a view to both expanding any future operation or extending mine life.

“Lake Rebecca is an outstanding opportunity for Ramelius to add a key growth asset to its portfolio of producing assets at Mount Magnet and Edna May,” Ramelius Resources managing director Mark Zeptner said in the company’s ASX announcement.

“The Apollo team has done an excellent job advancing Lake Rebecca to its current stage of development and have clearly demonstrated its potential for development into a high-quality gold mine in a tier-one gold mining jurisdiction.

“Subject to the offer being successful, Ramelius is looking forward to ramping up the drilling program across the tenement package to expand the existing resource and ultimately developing Lake Rebecca into a cornerstone producing asset within our portfolio.

“Our strategic target for the project is to identify a pathway to a mine life of 10 years at a run rate of at least 100,000 ounces per annum.

“We also look forward to welcoming Apollo shareholders as Ramelius shareholders and encourage Apollo shareholders to accept the offer as soon as possible.”

“The offer follows a period of significant corporate interest in Apollo and delivers an excellent result for our shareholders who, over the years, have seen Lake Rebecca transition from a greenfield exploration play to its status as a potential future stand-alone, long-life production asset,” Apollo Consolidated managing director Nick Castleden added.

“Ramelius brings excellent credentials in the business of taking new gold projects online and has ample experience, personnel, and funding to take the project forward.

“Lake Rebecca is clearly an excellent fit for Ramelius’ >250,000oz/pa production profile, and the Ramelius shares that Apollo shareholders will receive offer the stability of a multi-project production house while maintaining exposure to the upside as Lake Rebecca progresses along the path to development.

“The offer provides compelling value to shareholders with the circa 60 per cent cash component providing value certainty plus equity in a proven and well respected West Australian gold miner.

“We look forward to joining Ramelius’ existing shareholders to participate in the next stages of the journey.”

 

TO READ THE FULL ANNOUNCEMENT: CLICK HERE

 

Email: reception@rameliusresources.com.au

 

Web: www.rameliusresources.com.au

 

THE DAILY ROADHOUSE

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Ramelius Resources Makes Move on Spectrum Metals

THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Red 5 Increases Darlot Reserve and Resource Estimates

THE DRILL SERGEANT: Red 5 Limited (ASX: RED) updated the JORC Code 2012-compliant Ore Reserve and Mineral Resource estimates for the company’s Darlot gold mine in Western Australia.

 

Ramelius Resources Makes Move on Spectrum Metals

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) and Spectrum Metals (ASX: SPX) have struck a Bid Implementation Agreement (BIA) that will result in Ramelius offering to acquire all of the issued and outstanding ordinary shares in Spectrum that it does not already own.

Spectrum Shareholders will receive one Ramelius share for every ten Spectrum shares held and cash consideration of 1.7 cents per Spectrum share held, valuing Spectrum shares at 15 cents each – a 52 per cent premium to Spectrum’s last closing price of 9.9 cents on 7 February 2020.

On Ramelius’ radar is Spectrum’s 100 per cent-owned Penny West gold project, located approximately 150 kilometres south-east of Ramelius’ Mt Magnet mining and processing operations north-east of Perth in Western Australia.

Spectrum recently announced a maiden Mineral Resource estimate for the Penny West gold project of 799,000 tonnes at 13.8 grams per tonne gold for 355,500 ounces, including 569,000 tonnes at 16.8g/t gold for 306,800 ounces at Penny North.

The two companies consider the proximity of Ramelius’ Mt Magnet processing facility to Spectrum’s Penny West gold project provides potential to realise capital cost savings and operational synergies in developing the Penny West while maintaining exposure to ongoing exploration potential.

“There is clear logic in the combination of Spectrum’s assets with Ramelius’ WA operations,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“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.”

The deal appears a good one for shareholders of Spectrum, who will not only remain exposed to all of the upside from exploration and development of Penny West but will benefit from having access to cash flow generating assets at Edna May, Mt Magnet and Vivien, while gaining exposure to the Marda and Tampia Hill projects through being a shareholder of the enlarged combined group.

“The last year has been one of exceptional growth for Spectrum which we are particularly proud of,” Spectrum Metals chairman Alex Hewlett said.

“The Penny West gold system is developing into one of significant value, I am firmly of the view that this transaction with Ramelius will unlock the full value of Penny West for the benefit of all of our shareholders.

“The combination of Penny West with the existing assets of Ramelius will build a gold business capable of delivering exceptional future returns for our shareholders.”

 

Email: ramelius@rameliusresources.com.au

Web: www.rameliusresources.com.au

 

Ramelius Resources Beats December Gold Production Guidance

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) reported reaching December 2019 Quarter Production Guidance by producing 47,902 ounces of gold across its Western Australian operations.

Ramelius Resources explained the Group Quarterly gold production of 47,902 ounces easily beat its Guidance of 45,000 to 50,000 ounces.

Contributing operations were Mt Magnet with 30,230 ounces, Vivien with 7,726 ounces, and Edna May, which delivered 9,946 ounces.

Ramelius continued to progress development activities during the Quarter with key achievements including stoping production to commence at the Shannon underground mine at Mt Magnet, and the commencement of open pit mining at the Marda gold project at Edna May.

The company coffers are well endowed with cash and gold on hand sitting at $87.7 million at the end of the Quarter.

A touch lower than the September 2019 Qtr levels of $92.8 million, but the company has spent on planned capital investments into the ongoing development, including $5.4 million on exploration and $24.1 million in project development costs, comprising, $7.7 million on Shannon and Hill 60 (Mt Magnet) undergrounds, $5.2 million on the Stellar open pit (Mt Magnet), $2.6 million on Edna May underground, and $8.6 million on Marda pre-development work.

“The operations team continues to deliver consistent results, with production Guidance achieved once again whilst investing in new projects and exploration,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“We have maintained a strong cash balance throughout the first half of the year and will look to grow this strongly in the second half.

“Commencement of mining at Marda is a significant milestone for the company and we also look forward to development of the Greenfinch and Tampia projects in due course.

“We have had excellent exploration results at Eridanus, with significant resource growth and look forward to further exploration success at a number of our projects early in 2020.

“Drilling has already recommenced at Tampia South, Symes’ Find (southern extension) and Eridanus (deep diamond drilling).”

 

Email: ramelius@ramelius.com.au

Web: www.ramelius.com.au

 

THE DAILY ROADHOUSE

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Lithium Australia Implementing a Drive Towards Battery Energy Sustainability

THE BOURSE WHISPERER: Lithium Australia (ASX: LIT) has openly declared that its corporate intentions include shoring up an ethical and sustainable supply of energy metals to the battery industry, thus enhancing energy security in the process.

Ramelius Resources Reports Further High-Grades from Symes’ Find

THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) announced results from recent drilling undertaken at Symes’ Find deposit at the company’s Hampton project in Western Australia.

Breaker Resources Identifies New Gold Anomaly

THE DRILL SERGEANT: Breaker Resources (ASX: BRB) has identified a large new gold anomaly, which it claims to highlight the exploration upside at the company’s Lake Roe gold project, east of Kalgoorlie in Western Australia.

Comet Resources Scores Further High Grade Drilling Results

THE DRILL SERGEANT: Comet Resources (ASX: CRL) announced further results from recent diamond drilling conducted at the company’s Springdale graphite project near Hopetoun in southern West Australia.

Black Cat Syndicate Back Out Drilling at Bulong

THE DRILL SERGEANT: Black Cat Syndicate (ASX: BC8) informed the market it has resumed RC drilling has resumed at the company’s Bulong gold project in Western Australia.

 

Ramelius Resources Reports Further High-Grades from Symes’ Find

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THE DRILL SERGEANT: Ramelius Resources (ASX: RMS) announced results from recent drilling undertaken at Symes’ Find deposit at the company’s Hampton project in Western Australia.

Ramelius Resources said surface laterite gold mineralisation plus shallow oxide and bedrock gold mineralisation has been returned from step-out drilling beyond the previously reported 34,000 ounces Indicated and Inferred Mineral Resource at Symes’ Find.

Infill and step-out shallow oxide RC drill results from the recent drilling include:

11 metres at 4.38 grams per tonne gold from 2m, including 1m at 18.6g/t gold;

9m at 12.72g/t gold from 12m, including 1m at 99g/t gold

6m at 10.67g/t gold from 29m, including 3m at 19.58g/t gold

6m at 9.32g/t gold from 40m, including 2m at 23.8g/t gold

12m at 2.4g/t gold from 11m, including 1m at 10.4g/t gold

Deeper infill RC drill results confirmed continuity of mineralisation down dip within the fresh rock at Symes’ Find, including:

9m at 3.07g/t gold from 79m, including 1m at 8.19g/t gold

12m at 3.38g/t gold from 49m, including 1m at 9.45g/t gold

Further step-out surface laterite drill results also returned from Symes’ Find, included:

12m at 2.7g/t gold from surface

6m at 4.06g/t gold from 1m

5m at 2.61g/t gold from surface

Symes’ Find is located 120 kilometres southeast from the Edna May gold mine.

Ramelius indicated that drill access has recently been limited due to the winter grain cropping season, but where access was permissible the mineralisation shows good strike continuity to the south, into the larger Mt Hampton project.

Further strike extension step-out drilling is scheduled to commence once the winter grain crops have been harvested around mid-December this year.

“The latest Symes’ Find drilling results are further testament to the potential of the Edna May region to deliver future resources and reserves for the company and highlight the significance of Ramelius’ decision to consolidate a dominant land package extending over 130 kilometre strike through prospective stratigraphy around the Edna May gold mine,” Ramelius Resources managing director Mark Zeptner said in the companny’s announcement to the Australian Securities Exchange.

“We will continue to systematically explore the highly prospective Westonia/Holleton and Tampia greenstone belts to consolidate Edna May as a significant long-term production centre for the company.”

 

Email: ramelius@rameliusresources.com.au

Web: www.rameliusresources.com.au

 

Ramelius Resources Completes Marda Acquisition

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) finalised the acquisition of the Marda gold project in Western Australia.

Ramelius Resources explained the completion of the acquisition came after the receipt of Federal Court approval to transfer the shares of Black Oak Minerals Limited to Ramelius on 31 January 2019.

Ramelius subsequently paid the final consideration of $11 million, marking completion of the transaction.

The Marda gold project is located 191 kilometres north-northeast of Ramelius’ Edna May operations.

The company considers it to represent a shear-controlled gold system within trucking distance of Edna May.

Ramelius indicated that work on development studies will now be finalised, with results to date demonstrating that utilising Marda as a satellite ore source to supply high-grade feed will extend mine life and maximise the value of existing infrastructure at Edna May.

“The successful acquisition of the Marda gold project secures additional high-grade ore within trucking distance of the Edna May processing facility, reinforcing Ramelius’ commitment to growth, and well and truly establishing Edna May as a new production hub,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

 

Email: ramelius@rameliusresources.com.au

Website: www.rameliusresources.com.au

 

Ramelius Resources Surpasses December Gold Production Guidance

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THE BOURSE WHISPERER: Ramelius Resources (ASX: RMS) announced it has exceeded the guidance range and produced record gold production at the company’s operations in Western Australia.

Ramelius Resources declared gold production of 58,012 ounces (Guidance: 51-55,000 ounces) in the December 2017 quarter.

The breakdown of contributions came from:

Mt Magnet 23,352 ounces;

Vivien 13,283 ounces; and

Edna May’s first contribution to the Group of 21,377 ounces.

“I am delighted to provide this update showing that Ramelius has attained our targeted annualised production rate of over 200,000 ounces,” Ramelius Resources managing director Mark Zeptner said in the company’s announcement to the Australian Securities Exchange.

“This record quarter exceeded guidance due to the hard work and focus by our operations teams across our three sites, including the newly acquired Edna May gold mine.

“I look forward to continuing this positive trend and solidifying our position as a growing mid-tier gold producer.”

 

 

Email: info@rameliusresources.com.au

 

Website: www.rameliusresources.com.au