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Ramelius targets expansion with Apollo takeover

Ramelius Resources is set to acquire Apollo Consolidated for $128 million in a deal that would increase its gold mining footprint in Western Australia through a new production centre.

Apollo’s directors have unanimously recommended its shareholders accept Ramelius’ offer, which is worth $0.56 per Apollo share. This includes $0.34 in cash and 0.1375 Ramelius shares per Apollo share.

Ramelius will become the owner of the Lake Rebecca gold project in Western Australia when the takeover is completed.

Lake Rebecca contains a mineral resource estimate of 29.1 million tonnes at 1.2 grams per tonne for 1.1 million ounces.

This will enable Ramelius to develop a new production centre in Western Australia once Lake Rebecca is developed.

“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 managing director Mark Zeptner said.

“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 1 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.”

Apollo’s directors and management have entered binding agreements to accept the offer with further details to be supplied to Apollo’s shareholders on October 29, 2021.

“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,” Zeptner said.

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

Ramelius has engaged Azure Capital as its financial adviser, with Apollo working with Deloitte Corporate Finance as its financial adviser.

Apollo’s market capitalisation is $123.93 million at the time of writing.

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