Explaurum Limited’s defence to Ramelius Resources’ takeover

  • 2018
  • WA
  • Defence Advisor
  • $89m
  • Explaurum Limited, an ASX listed junior gold explorer with the quality Tampia Gold project in Western Australia, received an unsolicited, hostile takeover offer from Ramelius Resources, a cashed up mid-tier gold miner seeking to increase their resource base and deliver high grade feed for their Edna May mine.

    ICA Partners developed and implemented a takeover response strategy that identified and negotiated an alternative transaction, highlighting the inadequacy of Ramelius’ original offer and prompting Ramelius to increase its bid to a level the Explaurum Board was prepared to recommend to shareholders. Ultimately, the transaction, involving a combination of Ramelius scrip and cash, was beneficial to both sets of shareholders with the Ramelius share price increasing significantly such that the final offer upon closing represented a premium of 136% to the Explaurum share price before the initial offer.