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- West Australian gold explorer Spectrum Metals (SPX) has announced the takeover bid by Ramelius (RMS) is now unconditional
- Spectrum’s board unanimously recommends remaining shareholders accept the offer without delay – given a superior proposal is now unlikely
- Advantages of the takeover include Spectrum’s Penny West Gold Project being able to utilise RMS’ nearby Mt Magnet processing facility, and RMS’ greater financial capacity allowing advancement of exploration at the site
- Spectrum shareholders will receive one Ramelius share for every ten Spectrum shares held, and cash consideration of 1.7 cents per share
- Ramelius has advised Spectrum that it has extended the closing date of the offer to 5.00pm, 30 April 2020
- At Wednesday’s market close, Spectrum shares were steady at 10.5 cents apiece. Ramelius closed 5.1 per cent higher, priced at 92 cents per share
Spectrum Metals (SPX) has announced the takeover bid by Ramelius (RMS) is now unconditional.
RMS has received acceptances, which give it a relevant interest totalling 50.5 per cent of Spectrum.
Spectrum’s board now unanimously recommends remaining shareholders accept the offer without delay, given Ramelius’ strong control position makes it unlikely a superior proposal will eventuate.
Under the terms of the Offer, Spectrum shareholders will receive one (1) Ramelius share for every ten (10) Spectrum shares held and cash consideration of A$0.017 per Spectrum share held. The offer has the full support of the Spectrum board who have provided acceptances in respect to shares controlled by them.
The Spectrum board recommends shareholders accept the offer. Reasons include the Penny West Gold Project will be able to utilise RMS’ nearby Mt Magnet processing facility as well as its greater financial capacity for exploration.
Additionally, becoming a shareholder in a better-capitalised company will fund the growth of Spectrum’s assets and shareholders will receive attractive value and a significant premium for Spectrum shares.
“I am confident that this transaction with Ramelius will unlock the value of Penny West for the benefit of all Spectrum Shareholders. Upon successful completion of the offer, Spectrum Shareholders (including option holders upon scrip conversion) may own approximately 18% of Ramelius,” Spectrum Chairman Alexander Hewlett said.
“We consider that the combination of Penny West with Ramelius’ existing assets will build a gold business capable of delivering strong returns for our shareholders,” Alexander added.
Ramelius has advised Spectrum that it has extended the closing date of the offer to April 30 2020.
At Wednesday’s market close, Spectrum shares were steady at 10.5 cents apiece. Ramelius closed 5.1 per cent higher, priced at 92 cents per share.
