Breaker Resources NL has announced that it received the acceptance forms related to the planned takeover by Ramelius Resources Limited, which now has a 50.1 per cent interest in the former’s issued share capital.
Subject to the terms of the bid implementation agreement, Ramelius has now declared the offer as unconditional and has also accelerated the payment terms for Breaker shareholders who accepted the offer within 10 business days from the receipt of their acceptance forms.
Breaker’s board of directors recommends that shareholders who have not yet accepted the offer to do so without delay to realise the benefits of becoming shareholders of the merged group, which is outlined in Breaker’s previously released target statement.
Benefits under the offer include becoming a shareholder of a top 10 Australian domestic gold producer with two operating production hubs with an annual gold output of 240,000 oz to 280,000 oz.
Furthermore, the merged entity will look to combine the Lake Roe Gold Project with the Lake Rebecca Gold Project to establish a third gold production hub located in Western Australia (WA).
In line with the move, Ramelius now has the right to appoint a number of nominees so as to comprise the majority of the Breaker board of directors.
Non-Executive Chairman Peter Cook and Executive Director and CEO Sam Smith will remain on the Breaker board to manage the interests of Breaker shareholders until Ramelius reaches the compulsory acquisition of the company, or if the offer period expires.
Breaker’s board said shareholders who do not accept the offer by the closing date of 15 May risk losing influence over the direction of the Breaker business, which is now controlled by Ramelius.
Ramelius has advised that no decision has been made to extend the offer, adding that there is no guarantee that the offer will extend beyond the 15 May deadline.
