The Australian Government Takeover Panel’s announced having received an application from Ramelius Resources Limited (ASX: RMS) regarding the two agreements by Westgold Resources Limited (ASX: WGX). Ramelius has referred to the contradictory nature of its mutual confidentiality deed and Westgold’s arrangement with Karora.
Ramelius and Westgold had entered into a mutual confidentiality deed, which included mutual standstill restrictions for a period of 12 months ending on 14 November 2024 (Standstill Restrictions). However, on 8 April 2024, Westgold announced that it had entered into an arrangement agreement with Karora, pursuant to which Westgold is to acquire 100% of Karora via a Canadian plan of arrangement (Arrangement Agreement).
Ramelius is not seeking any interim orders but final orders in relation to the Standstill Restrictions.
Not withstanding this, Ramelius Resources Limited had recently announced an updated Mineral Resource for the Eridanus project at the Mt Magnet gold mine in Western Australia.
The updated Mineral Resource Estimate now includes the adjacent Lone Pine and Theakston deposits and incorporates recent drilling and mining information. The new estimate is 21 Mt at 1.7 g/t for 1,200,000 ounces, marking a 64% increase from the June 2023 Mineral Resource Estimate. This combines the previous estimate of 730,000 ounces and an Exploration Target of 125,000 - 225,000 ounces into a single resource, significantly exceeding the upper end of the Exploration Target range and with over 75% of the resource classified in the Measured or Indicated categories. The updated estimate also includes high-grade zones, with exploration drilling highlights at Eridanus reported in the March 2024 Quarter.
Ramelius plans to commence an extensive and aggressive 10,000-meter drill program in June 2024 at the Eridanus project. This program will include 3,300 meters of diamond drilling and is designed to infill and extend the mineral resources on the flanks of the current open pit. The goal is to enable a more informed analysis of various mining options. This drilling initiative follows recent exploration and drilling activities that have already resulted in a significant 64% increase in the project's mineral resources.
Despite the potential impact on investor confidence and stock prices due to the recent affairs with Westgold, Ramelius continues to demonstrate strong future commercial growth prospects, particularly from its Eridanus project.
The project's strong prospectivity is driving significant growth in the company’s mineral resources and future production capabilities. The recent resource upgrade supports the long-term operational viability of the project, indicating a mine life well beyond 10 years. Additionally, Eridanus is poised to become the third 1Moz+ mine in the Mt Magnet field, underscoring its prominent market position. Sustained drilling efforts are expected to further augment these resources and enhance the project's commercial potential.
The company's robust operating base, evidenced by strong year-on-year growth in Financials and Shareholder Value, coupled with a solid cash and liquid position, further supports its growth capabilities and economic viability.
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