Western Australian gold producer Ramelius Resources (ASX:RMS) reports it has acquired a controlling interest in emerging gold producer Breaker Resources (ASX:BRB) with its relevant interest now exceeding 50.1% of Breaker’s issued capital.
The company says it intends to exercise the control it has acquired to continue developing Breaker’s Lake Roe Gold Project into an operating mine, and intends to appoint most of Breaker’s directors.
Ramelius says it will be able to reduce Breaker’s exposure to risks associated with developing such as regulatory risks, funding risks, labour shortages, inflationary pressures, and uncertainty regarding the economic development of Lake Roe.
Now that it holds a majority interest in the shares of Breaker, Ramelius is encouraging all remaining Breaker shareholders to accept Ramelius’ unconditional offer of 1 Ramelius share for every 2.82 Breaker shares.
The implied value of this offer is at $0.40 per Breaker share, or about $130.7 million based on the 3-day volume weighted average price (VWAP) of Ramelius shares of $1.27 prior to the release of the offer.
Ramelius notes the offer also represents a 41% premium to Breaker’s 3-day VWAP of $0.284, a 41.7% premium to Breaker’s 10-day VWAP of $0.282, a 41.5% premium to Breaker’s 30-day VWAP of $0.283, and a 30.5% premium to Breaker’s 90-day VWAP of $0.307.
Breaker shareholders that accept into the offer will be paid within 10 business days from the receipt of the acceptance form, and Ramelius notes the offer is scheduled to close on 15 May 2023.
Ramelius reports if shareholders do not accept the offer, they will remain a minority shareholder in Breaker with a reduced influence in running the business. Breaker also recommends its shareholder accept the offer.
Ramelius Resources is a Western Australian gold producer that owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia, and Penny gold mines, along with the Rebecca Gold Project in Western Australia.
Breaker Resources is an emerging gold producer focused on developing the 1.7 million ounce Lake Roe Gold Project located 100km east of Kalgoorlie in Western Australia.
Images: Ramelius Resources Ltd
