Explaurum Ltd.'s board unanimously recommended its shareholders accept the improved takeover offer by Ramelius Resources Ltd.

Ramelius will make the offer unconditional if the Alkane Resources Ltd. share subscription agreement is not approved by Explaurum shareholders; Ramelius gave the company 14 days to decide.

As a result, the company said Dec. 18 that the chances of the Alkane transaction being approved are low, and accordingly, the parties agreed to terminate the deal to pave way for the unconditional offer.

As Ramelius now has a relevant interest of 26.73% in Explaurum, a Ramelius nominee will also be invited to join Explaurum's board.

Ramelius also had advised that it intends to seek majority representation on the Explaurum board, implement the results of its strategic review and possibly delist Explaurum from the ASX.

Ramelius will also provide short-term funding to Explaurum to meet its financial commitments and to provide ongoing working capital until the end of January 2019. The loan is repayable June 30, 2019.

The company said the offer includes a cash component, which will enable shareholders to immediately realize the value of their shares, and this offer is final and will not be increased.