Valuation 21c

Thursday 29 November 2018
Explaurum Ltd (EXU) | RMS bid update| SPEC BUY | Analyst | James Wilson
Market Cap $55m | Current Price $0.12 | Target Price / Valuation $0.21
Explaurum (EXU) has announced it has been advised by Ramelius Resources (RMS) that following a period of due diligence that RMS is unable to improve the terms of its current off-market 1:4 scrip offer for EXU.
In early November RMS had proposed an additional $0.05ps cash to the existing offer pending a confirmatory due diligence period to finalise its offer.
The current RMS offer remains on foot and is due to close on the 21st December. EXU advises that it will proceed with the Alkane transaction. If this occurs, RMS intends to seek ASIC approval to withdraw its bid prior to the 21st December.
EXU will now proceed with implementation of the Alkane placement transaction which proposes to invest $8m in EXU through the placement of 67m shares at an issue price of $0.12ps giving ALK 12.2% interest in EXU. In addition EXU will grant ALK a further 53m options in two tranches at exercise prices of between 13cps and 14cps.
ALK has the right to appoint a Director to the board if ALK’s interest goes above 12%.