Rameleus have capital commitments ahead of them but a scrip takeover valuing Rox at $200m at the current RMS share price would only dilute RMS by approximately 8% and they would have the financial capacity to build the mine with existing cash and future cash flows. That would provide RMS with $200m+ in annual cash flow from Youanmi and provide all shareholders the opportunity to participate in the RMS upside. This is a scenario that would potentially interest the large shareholders in my opinion. The top 3 shareholders have all the say in a takeover situation so the current share price, dictated by Retail Investors, is not really that important a factor in pricing a takeover.
RXL Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
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