March 8 (Reuters) - Australian gold miner Ramelius

Resources ( RMLRF ) on Friday confirmed it is in discussions with

Karora Resources ( KRRGF ) for a potential acquisition of the

Canada-based mine operator.

Shares of Ramelius were up 3.2% at A$1.595, as of 0120 GMT,

and are set for their best week since early December, if gains

hold. The broader benchmark S&P/ASX 200 index rose in

tandem to add nearly 1% in value.

The company, however, clarified the discussions were

ongoing without any certainty of closure.

The Australian Financial Review valued the transaction to be

between A$700 million ($462.91 million) and A$1 billion,

according to a report published by the local daily on Thursday.

Karora's market capitalization stood at C$841 million ($625

million) as at market close on March 6, Ramelius said.

"There is no certainty that the discussions will lead to a

transaction and if so, at what price," the company added.

Karora did not immediately respond to a Reuters request for

comments.

Toronto-listed Karora is a gold producer and owns and

operates two gold mines in Western Australia.

This deal would strengthen Ramelius' chances of touching its

2024 financial year gold production forecast of 265,000 -

280,000 ounces.

($1 = 1.3456 Canadian dollars)

($1 = 1.5122 Australian dollars)