Westgold Resources and Karora Resources have officially joined forces in a merger, creating a new player in the gold mining industry. The newly formed company is now listed on both the Australian Securities Exchange (ASX) and the Toronto Stock Exchange (TSX), with a combined market value of approximately 2.5 billion (C2.3 billion).
This merger positions the company among the top five gold producers in Australia. As part of the merger agreement, Westgold took over all shares of Karora.
In return, Karora’s shareholders received 2.524 shares of Westgold, C0.608 in cash, plus an additional 0.30 shares of Culico Metals, a new company that was created as a spin-off from Karora. Wayne Bramwell, the Managing Director and CEO of Westgold spoke about the advantages of this merger.
He explained that this marks a significant step in Westgold’s growth, turning it into a larger and financially robust gold producer.
“Our value is greatly improved with a larger team, strong assets, and exciting new exploration opportunities in two of Australia’s golden districts,” he said. He also mentioned how this merger expands Westgold’s operations in Western Australia.
This area is known for its wealth of gold resources, which the company can now take advantage of to increase cash flow and support growth. Bramwell outlined that Westgold is entering this new chapter with a strong financial position and plans to achieve estimated cost savings of 281 million (C254 million) and operational improvements totalling roughly 209 million (C189 million).
Paul Huet, the Chairman and CEO of Karora, expressed his excitement about the merger, calling it a “transformative step” for the company. He noted that combining Karora with Westgold will help ensure that the larger company continues to grow as a major gold producer, especially with gold prices having a strong historical performance.
In summary, this merger is seen as a pivotal moment for both companies as they come together to create a stronger entity in the competitive gold market. With a solid plan and substantial resources, the new Westgold is well-positioned to capitalise on opportunities within the gold sector.
Stay updated with the latest news on mining developments and industry updates by subscribing to Latest Mining News.
Related News: