Ramelius acquires majority stake in Breaker

As payment for the acquisition, Breaker shareholders received an implied offer price of $0.40 per share, equating to one Ramelius share for every 2.82 Breaker shares.

The offer price represented a premium of 41.5 per cent to Breaker’s 30-day volume-weighted average price, totalling an equity value of 130.7 million.

As of May 8, Ramelius had acquired more than 50.1 per cent of Breaker’s shares.

Ramelius declared the offer unconditional and Breaker’s board unanimously recommended that the company’s shareholders who had not accepted the offer yet to do so without delay to realise the benefits of becoming shareholders of the merged group, especially in the absence of a superior proposal.

Breaker said a benefit of the take-over includes becoming a shareholder of a top ten Australian domestic gold producer with two operating gold production hubs with an annual profitable gold output of 240,000-280,000 ounces per annum.

The merged entity would look to combine Breaker’s Lake Roe gold project with Ramelius’ Lake Rebecca gold project to establish a third gold production hub in Western Australia.

This would coincide with Ramelius’ many prominent WA gold mines, such as the Mt Magnet gold mine and the Edna May gold mine.

Ramelius’ acquisition of Breaker is due to close May 15 at 7.00pm (Australian Eastern Standard Time), unless the deal is extended or a superior offer is presented.