Ramelius Resources is in exclusive discussions with Karora Resources regarding a potential acquisition.
The acquisition discussions were first reported by The Australian Financial Review (AFR) which reported that Ramelius is prepared to spend $700 million–$1 billion on the transaction.
Ramelius has not commented on the amount, only saying that discussions concerning valuation are ongoing and no final agreement has been reached in this regard.
“The company notes Karora’s market capitalisation of approximately $C841 million,” Ramelius said in its ASX announcement.
“Discussions between the parties, including in relation to value, remain incomplete. There is no certainty that the discussions will lead to a transaction and if so at what price.”
Karora’s current primary gold producing operations are its 100 per cent interests in the Beta Hunt mine, the Higginsville gold operations and the Spargos gold mine in Western Australia.
Karora is targeting gold production of 170,000–195,000 ounces annually through a self-funded organic growth plan.
Ramelius has several gold operations throughout WA, most notably the Cue project near the Mount Magnet production centre.
The company acquired Cue’s former owner Musgrave Minerals back in July 2023.
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