Another takeover offer27 Oct 2021 12:09
Gold miner Gold Road Resources has made an all-cash offer to acquire the shares it does not own in Western Australian gold exploration company Apollo Consolidated, for $0.41 (A$0.56) per share.
Apollo Consolidated already received a takeover proposal from Australian firm Ramelius Resources earlier this month.
The unconditional off-market offer implies about $124.3m (A$166m) (fully diluted basis) of equity value for Apollo and a premium to Ramelius’ cash and scrip offer of $0.415 (A$0.5542).
Gold Road said in a statement: “Gold Road’s offer provides Apollo shareholders with a compelling opportunity to realise certain and near-term value for their Apollo shares at an offer price that represents the all-time highest price paid for an Apollo share.”
The offer forms part of Gold Road’s strategy to grow and diversify its growth pipeline with low-risk opportunities in tier one jurisdictions.
Gold Road currently holds a 19.9% stake in the issued share capital of Apollo, which owns the advanced gold project at Lake Rebecca, greenfield gold projects at Yindi and Larkin, and the Louisa nickel-copper sulphide project in the Kimberley.
Subject to a successful outcome, Gold Road plans to carry out continued exploration and studies to advance the Lake Rebecca Project.
Gold Road also intends to grow resources at Lake Rebecca and develop new mining operations.
1.035 million ounce Mineral Resource. The offer implies $124.3m of equity value for Apollo
Lake Rebecca Gold Project (Apollo 100%)*
The Lake Rebecca Gold Project comprises ~160km2 of tenure located approximately 145km east of Kalgoorlie, covering a greenstone belt on the eastern margin of the Norseman-Wiluna Greenstone Belt. The belt lies at the southern end of the Laverton Tectonic Zone, a regionally important structural corridor that hosts multiple gold camps.
The project contains three advanced and growing gold discoveries – Rebecca (previously named Bombora), Duke, and Duchess (previously named Redskin), in which gold mineralisation is hosted by broad zones of disseminated sulphides in gneiss. The boundaries of each system are only partially defined and offer potential for high-grade plunging positions internal to the zones.
In February 2020, Apollo declared a combined 1.035 million ounce Mineral Resource1 at the Lake Rebecca Gold Project, across three deposits and wholly constrained within optimised pit shells. The flagship Rebecca deposit contributes 775,000 ounces, of which 550,000 ounces are at Indicated category. On 20 April 2021, Mineral Resource estimates were revised for the Rebecca, Duchess and Duke deposits following infill and step-out RC and diamond drilling completed in 2020. Total combined in-pit Mineral Resources now stand at 29.1 Million tonnes at 1.2g/t Au for 1.105 Million ounces of gold, 74% of which is at Indicated status.
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