Karora Resources (TSX: KRR) confirmed on Thursday that it is currently in discussions with Ramelius Resources (ASX: RMS) regarding a potential business combination.
Canadian-based Karora currently has the integrated Beta Hunt gold mine and Higginsville gold operations in Western Australia.
Ramelius also operates in Western Australia. The company’s Wattle Dam mine, located approximately 70 km south of Kalgoorlie, operated from 2006 to 2013. At one stage it was the highest-grade gold mine in Australia.
Additionally, Ramelius owns and operates two production and processing hubs at Mt Magnet and Edna May, both in Western Australia.
On Thursday, it announced that the company’s securities would be placed in a trading halt, pending the release of an announcement.
“Discussions remain confidential and incomplete. No definitive agreement has been reached,” the miner said in a press release. “Unless ASX decides otherwise, the securities will remain in a trading halt until the earlier of the commencement of normal trading on Monday, March 11, 2024, or when the announcement is released to the market.”
Shares in Karora rose 4.25% on Thursday for a market capitalization of $649 million. Ramelius’ stock declined 2.83%, capitalizing the company at $1.2 billion.
