Background
- Ramelius Resources Limited (Ramelius or the Company) is an ASX-listed gold producer based in Western Australia which has been in production since 2006
- Ramelius owns and operates the Mt Magnet, Edna May, Vivien, Marda, Tampia and Penna gold mines, and the recently acquired Rebecca Gold Project, all of which are located in Western Australia
- Following a number of successful engagements in the past, including its $78m acquisition of Explaurum in 2019, the Company engaged AE as an independent corporate advisor on its acquisition of Spectrum Metals Limited (Spectrum), a domestic West-Australian focused gold exploration and development company
Our role
- Approach agreed target to initiate contact and build rapport
- Facilitate exploratory meetings and discussions to gauge receptiveness to approach and cultural alignment
- Build investment thesis and requisite internal support documents
- Indicative pricing analysis
- Draft and submit proposal / non-binding indicative offer (NBIO)
- Assist in project management of financial, tax, legal, strategic and commercial due diligence
- Consider funding requirements (soft sounding of brokers)
- Draft and submit final offer/ proposal
- Evaluate synergies, risks, issues, operating model and commence integration planning
- Negotiation of Transaction Documents, such as a Shareholders agreement
- Finalise and executive legal agreements, and announce transaction to shareholders
Outcomes
- Ramelius successfully completed an 100% acquisition of Spectrum for A$171m in June 2020 with the unanimous support of the Spectrum Board
- The acquisition provided Ramelius access to Spectrum’s primary asset, the high-grade Penny project, located 150km SE of Mt Magnet. This provided the opportunity for significant additional high-grade feed to the Mt Magnet mill, improving financial returns and extending overall mine life.