The directors of Musgrave Minerals Ltd continue to unanimously recommend to shareholders that they accept the takeover offer by top 10 Australian gold producer Ramelius Resources Ltd in the absence of a superior proposal.
This comes as Ramelius, through wholly-owned subsidiary Mt Magnet Gold Pty Ltd, surpassed a 17.71% interest in Musgrave this morning and the offer from previous suitor Westgold Resources Ltd closed and lapsed yesterday given the offer conditions were not all fulfilled or waived.
Musgrave advises that “all acceptances under the Westgold offer are void and Musgrave shareholders are free to deal with their Musgrave shares if they previously accepted into the Westgold offer”.
READ: Ramelius Resources values Musgrave Minerals at $201 million in recommended takeover offer
Under the terms of the Ramelius offer, Musgrave shareholders will receive one Ramelius share for every 4.21 Musgrave shares held and $0.04 in cash for every Musgrave share held.
Indicating their support for the offer, Musgrave directors have confirmed that they have accepted the Ramelius offer for all the shares they own or control.
Additional scale
Located in the richly endowed Murchison province and with a resource of 12.3 million tonnes at 2.3 g/t for 927,000 ounces gold, Musgrave’s Cue Project will provide additional scale through regional consolidation with Ramelius’ Mt Magnet processing facility 35 kilometres to the south.
Ramelius, a top 10 Australian gold producer, has the financial capacity, operational experience and exploration expertise to continue the significant work done by Musgrave with a view to expand the existing resource and develop the Cue Project, in order to maximise the value of the project for both sets of shareholders.
No superior proposal
As of this morning, Musgrave had not received any alternative proposal from any party intending to make a superior proposal and directors were not aware of any other offer or proposal which might be made as an alternative to the Ramelius offer.
The Ramelius offer is scheduled to close at 7:00pm (Sydney time) on August 18, 2023, unless extended or withdrawn by Ramelius.