Australian explorer Ramelius confirms talks to buy Karora Resources (updated)

Karora Resources

07/03/2024 23:33

(Adds details and background in paragraph 3-7)
       March 8 (Reuters) - Australia's Ramelius Resources
 RMS.AX  on Friday confirmed it is in discussions with Karora
Resources  KRR.TO  for a potential acquisition of the
Canada-based mine operator.
    The company, however, clarified the discussions were
currently ongoing without any certainty of closure. 
    Karora's market capitalization stood at C$841 million ($625
million) as at market close on March 6, Ramelius said.
    "There is no certainty that the discussions will lead to a
transaction and if so, at what price," the company said. 
    Karora did not immediately respond to a Reuters request for
comments.      
    Toronto-listed Karora Resources is a gold producer and owns
and operates two gold mines in Western Australia. 
    This deal would strengthen Ramelius' chances of touching its
2024 financial year gold production forecast of 265,000 -
280,000 ounces.

    
($1 = 1.5115 Australian dollars)
($1 = 1.3456 Canadian dollars)

 (Reporting by Rajasik  Mukherjee and Sneha Kumar in Bengaluru;
Editing by Shweta Agarwal)
 ((Rajasik.Mukherjee@thomsonreuters.com;))