Ramelius Resources agrees to buy Spartan Resources for A$2.4bn

Ramelius offered A$0.25 in cash and 0.6957 new shares for each Spartan share, worth A$1.78 and a 27.5% premium to the 30-day average price. The prize is the Dalgaranga gold project in Western Australia. Ramelius aims to produce 500,000 ounces a year by its 2030 financial year.

Why it matters. Cash plus shares lets the buyer limit dilution while giving the target’s holders a stake in the combined company.

Source

Mining Weekly

In the course

Module 9: The M&A process