With Ramelius Resources now owning over 90 per cent of shares in Musgrave Minerals, the mid-tier gold miner will now move to compulsory acquisition.
The star of the takeover is Musgrave’s promising cue gold project in the Murchison region of WA, which has a mineral resource of 927,000 ounces of gold.
The deal is the latest in what is increasingly becoming a consolidation battle in the Murchison region of WA, with mid-tier miners tussling for high-grade ground in the storied gold district.
Back in July, Ramelius tabled a unanimously recommended $0.34-per-share offer for the gold explorer, beating out a $0.30-per-share bid from Westgold Resources.
On top of the $0.34-per-share offer price, Ramelius’ bid also includes an additional $0.04 per share in cash.
The offer represented a 39 per cent premium to Musgrave’s five-day volume-weighted average price of $0.245 per share, at the time of the offer.
“Musgrave shareholders who have not accepted the offer before the closing date (7pm AEST tonight) will not receive the offer consideration until after the compulsory acquisition process is completed, which is likely to be longer than one month after the offer closes,” Ramelius told the market.
“Given Ramelius will now move to compulsory acquisition, if you have not accepted the offer you are encouraged to do so immediately.”
A golden discovery
Just this week, Ramelius also announced a 28 per cent increase to its Penny gold mine resource following a recent drilling campaign.
The WA mine now boats a 440,000-tonne mineral resource at 22 grams per tonne gold, for a 320,000 ounces of gold.
Penny gold mine is located in the Sandstone region, which neighbours both Leonora and Murchison. It is also only a stone’s throw from Ramelius’ Mt Magnet mine.