UPDATE 2-Australian explorer Ramelius confirms talks to acquire Karora Resources

(Adds share moves in paragraph 2, context in paragraph 4)

March 8 (Reuters) - Australian gold miner Ramelius Resources on Friday confirmed it is in discussions with Karora Resources 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)

(Reporting by Rajasik Mukherjee and Sneha Kumar in Bengaluru; Editing by Shweta Agarwal and Sherry Jacob-Phillips)