Ramelius makes a play for Spectrum

Gold miner Ramelius Resources has entered into a bid implementation agreement with fellow-listed Spectrum Metals, in a bid to acquire the high-grade Penny West gold project, in Western Australia.

Under the terms of the offer, Spectrum shareholders would receive one Ramelius share for every ten Spectrum shares held, along with a cash consideration of 1.7c a share, valuing Spectrum shares at 15c each. The offer represented a 52% premium to Spectrum’s closing price on February 7, and a 61% premium to the company’s ten-day volume weighted average share price.

The Spectrum board has unanimously recommended that shareholders accept the offer, saying in a joint statement on Monday that through the takeover, Spectrum shareholders would become part of a profitable, financially secure Australian gold producer with a stable diversified platform of established gold mines.