5 May 2010
For Immediate Release
CAPITAL RETURN OF FIVE CENTS PER SHARE
The Directors of Ramelius Resources Limited are pleased to announce a return
of capital to shareholders of 5 cents per share.
The capital return is subject to shareholder approval and a favourable class
ruling from the Australian Taxation Office ATO in regards to the taxation
treatment of the payment.
Based on Ramelius current 291.3 million ordinary shares on issue, the
proposed capital return to shareholders totals A$14.5 million.
The Ramelius Directors have recently reviewed the ongoing excellent
performance of the Wattle Dam underground gold mine in Western Australia
since production commenced in the December 2009 quarter. During the
period to 31 March 2010, gold production was 36,497 ounces at an average
grade of 28.35g/t (including low grade ore) which generated total gold sales of
$33 million for the period to 31 March 2010.
The Directors believe that the proposed capital return is appropriate for the
following reasons.
1. As detailed above, the excellent performance of the underground mine at
Wattle Dam has outperformed the expected mine plan and as at 31 March
2010, total gold sales from the mine exceeded all capital and operating
costs since the underground mine development commenced in May 2009.
2. The Company does not presently have any substantial capital expenditure
requirements in its future plans that cannot be funded from internal cash
flows.
3. Ramelius does not currently have any significant franking credits to allow
for a franked dividend to be paid in the near future.
At this time, the Company is still pursuing a quality acquisition in the gold
sector, and therefore intends to hold a significant cash balance to enable
Ramelius to participate in any such opportunities that may arise. However
Ramelius will only make such an acquisition if it can demonstrate significant
upside potential beyond the nominal acquisition price.
In the meantime, the Company will continue with its strategy to extend the
mine life at Wattle Dam and work towards making a significant gold discovery
in world-class gold regions in Australia or overseas. The Company currently has
approximately A$80 million in cash and gold on hand and remains debt free.
The Company plans to hold a meeting of shareholders as soon as possible to
approve the capital return and to then apply immediately thereafter for a class
ruling from the ATO. The capital return will be paid as soon as possible after a
favourable class ruling is received from the ATO.
Further details of the capital return and a Notice of Meeting will be sent to all
shareholders in the near future.
For further information contact:
Ian Gordon
Chief Executive Officer
Ramelius Resources Limited
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