Is that a guarantee The unmistakable message from the Friday update is that Ramelius will declare its BRB bid unconditional, which, at that moment entitles it to register the BRB shares from the acceptors to its bid. It can do so today , and may, if the 2 US funds agitate to do so so as to enable them to sell their newly acquired RMS shares. The professional arbitragers- the firms that have sold short RMS shares at a price that exceeds, 2 to 3 cents, their entry price to BRB shares- will be happy to see this event . But there is no guaranty that Ramelius will so do....need I say. However, from the perspective of Ramelius..... they are advantaged by the hitherto 33% acceptance to its bid.At 33% equity Ramelius can equity account the BRB balance sheet so 33% of its cash and 33% of its stated value in the tenements. It is demonstrably good for Ramelius and its shareholders. What should be understood is that Ramelius effectively has control of BRB at the present 33%. The 2 US funds will see the logic of allowing Ramelius to proceed with the development of Lake Roe, by Breaker Resources , by causing it to make the requisite capital raisings which will likely aggregate to $200m . In the absence of a vastly superior takeover for BRB from say Northern Star it is a matter of time for Ramelius to march up the BRB share register from 33% to 50% to 80% and eventually 90% when it is compulsorily acquired. Up until Friday the 21st the decision as to where to locate the processing centre for its third hub was up in the air. Not any more.
BRB Price at posting:
46.5¢ Sentiment: None Disclosure: Not Held
