- Ramelius Resources (RMS) has offered to purchase Spectrum Metals (SPX)
- Under the offer, Spectrum shareholder would receive 1 Ramelius share for every 10 Spectrum shares
- The deal values Spectrum shares at 15¢ each
- Spectrum’s Board of directors recommends shareholders vote in favour of the deal
- Spectrum is up 31.3 per cent on the market this morning, trading at 13¢ per share, while Ramelius is down 5.66 per cent, trading at $1.25 apiece at RMS
Ramelius Resources (RMS) has offered a bid to purchase Spectrum Metals (SPX).
Under the offer, Spectrum shareholder will receive 1 Ramelius share for every 10 Spectrum shares. The deal values Spectrum shares at 15¢ each.
Spectrum’s Board of directors has unanimously recommended that Spectrum shareholders accept to take the deal, as they will be voting in favour of the offer.
Spectrum owns the high-grade Penny West Gold Project in Western Australia and is one of the highest undeveloped gold assets in Australia. It offers significant exploration potential at depth and along strike.
“The last year has been one of exceptional growth for Spectrum which we
are particularly proud of,” Spectrum 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,” he added.
Ramelius is a West Australian gold producer, who has been listed on the ASX since 2003. It owns and operates the Mt Magnet, Edna May, Vivien and Marda gold mines and owns a 90 per cent interest in the Tampia Hill gold project.
“There is clear logic in the combination of Spectrum’s assets with Ramelius’ WA operations,” Ramelius Managing Director Mark Zeptner said.
“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,” he explained.
Mark believes this offer is the next step in Ramelius growth strategy and will benefit both companies.
Spectrum is up 31.3 per cent on the market this morning, trading at 13¢ per share, while Ramelius is down 5.66 per cent, trading at $1.25 apiece at 12:55 pm AEST.