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neWs

Checkerboard builds nicely

for Ramelius with Penny West play

n end to litigation started by Venus and Mr Adams of DJ Carmichael in July Spectrum. Announced on February 10,
AMetals Corp has opened the door and August 2018”. Ramelius’ bid offers Spectrum share-
for Spectrum Metals Ltd to strike a M&A Venus started the legal proceedings holders one Ramelius share for every 10
agreement with Ramelius Resources Ltd in October, prior to a maiden indicated/ Spectrum shares and a cash considera-
over the Penny West gold project near Mt inferred resource at Penny West of tion of 1.7c/share.
Magnet. 799,000t @ 13.8 g/t gold for 355,500oz, The offer values Spectrum at 15c/share
Venus’s claims against Spectrum over including 569,000oz @ 16.8 g/t for based on the VWAP of Ramelius shares
the Penny West ownership have been 306,800oz at Penny North, announced traded on February 7, representing a 52%
resolved, with claims against Spectrum later that month. premium to Spectrum’s last closing price
managing director Paul Adams and for- Venus’s interjection failed to stop of 9.9c/share also on February 7.
mer director David Bosio also understood the rapid ascension of Penny West, as “We were in contact with Spectrum last
to be “definitively settled”. 30,000m of drilling was completed within year and had some early conversations.
A figure of $850,000 paid by Spectrum nine months and a resource defined with The [Venus] case came along on their
to Venus essentially brought the case to a tailwind blowing hard and mounting side and we took a step back. It was for
a close. consolidation in the gold sector. those guys to settle, we did our work in
“Obviously, I wasn’t on the Spectrum With cash and gold totalling $87.7 mil- the background and we were in a position
litigation committee, but we were always lion (as at December 31) and coming off to act when that issue fell away,” Rame-
prepared to go to trial,” Adams told Pay- an “excellent” financial and operational lius chief financial officer Tim Manners
dirt. FY2019, Ramelius’ decided it was time told Paydirt.
Adams has always maintained no to back up last year’s play for Explaurum “We think there are some very good
wrongdoing in the way in which Penny and the Marda mine with another comple- benefits for both groups of sharehold-
West was acquired, after Venus alleged mentary acquisition. ers and hopefully the metrics of the bid
“breaches of fiduciary duty, breaches of Penny West is about 150km south- are appealing enough to have Spectrum
confidence and misuse of information east of Ramelius’s Mt Magnet facilities, shareholders come on board. The offer
that Venus Metals provided to Mr Bosio making the miner an obvious partner for is both cash and shares in Ramelius, so

Ramelius’ Checkers mill at Mt Magnet where ore from Penny West will be processed

Page 8 MaRCH 2020 aUSTRaLIa’S PaYDIRT