Ramelius confirms potential deal with Canadian miner Karora
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The news: Gold miner Ramelius Resources has confirmed it is in ongoing discussions with Canadian miner Karora over a potential deal.
The numbers: ASX-listed Ramelius paused trading on Thursday after press speculation of a potential transaction valued between $700 million and $1 billion.
The context: Ramelius confirmed that it is currently in "exclusive discussions" regarding a "potential corporate transaction" with Karora.
In a release to the market, Ramelius said "discussions concerning valuation are ongoing and no final agreement has been reached in this regard", noting TSX-listed Karora's market cap of approximately C$863 million ($967 million).
The company said there is "no certainty that the discussions will lead to a transaction and if so at what price".
In an announcement overnight, Karora confirmed the discussions and said it was regarding "a potential business combination".
Like Perth-based Ramelius, Karora operates a number of assets in Western Australia, including the Beta Hunt Mine, Higginsville Gold and the Lakewood Mill.
The sources: ASX announcement , Toronto Stock Exchange
