Westgold Resources has moved another step closer to its deal for Karora Resources, with the Canada-listed company’s shareholders voting in favour of the transaction over the weekend.
Westgold Resources has moved another step closer to its deal for Karora Resources, with the Canada-listed company’s shareholders voting in favour of the transaction over the weekend.
A total of 99 per cent of voting Karora shareholders endorsed the company’s merger with Westgold, ticking another conditional box and leaving the deal subject to a final order from a court in Ontario on July 24.
Westgold managing director Wayne Bramwell said the latest development highlighted the potential of the deal, which would create an enlarged gold producer amid a record price environment.
“The overwhelming support for this merger shown by Karora shareholders confirms the independently verified value and the compelling commercial rationale behind this transaction,” he said.
The move for Karora will add the Beta Hunt and Higginsville goldmines to Westgold’s books, adding projects in the Kambalda district to Westgold’s presence in the Mid West.
“With the integration of the Karora assets, the expanded Westgold will have strategic footprints across two of Western Australia’s most prolific goldfields,” Mr Bramwell said.
Westgold’s move for Karora was clouded by a Takeovers Panel challenge from rival Ramelius, which had earlier engaged in its own discussions with both parties.
The Takeovers Panel opted not to declare unacceptable circumstances over the terms of the deal after Westgold tweaked its agreement in July.
The deal subsequently received Foreign Investment Review Board approval, and now appears destined for completion.
Westgold and Karora say their merger will create a top-five Australian gold producer with a market capitalisation of $2.4 billion.
The combined company will be led by Mr Bramwell, with Cheryl Edwardes staying on as chair.
The merger would be the second major gold deal of the year, following the recent tie-up of Red 5 and Silver Lake Resources.
Westgold shares were down around 1 per cent at 11.20am.
