Published: October 1, 2021 |

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Westgold Resources has revealed plans to make a takeover offer of A$104.8 million ($75.3 million) for rival Australian gold mining company Gascoyne Resources.

In June 2021, Gascoyne Resources had announced a merger deal worth A$44.7 million ($32.34 million) with Firefly Resources.

The following month, the two companies executed a binding documentation for demerging their copper-gold and lithium exploration assets in Australia and bundle them into a new firm called Firetail Resources. The new company is planned to be owned 100 percent by Firefly Resources.

Westgold is offering to exchange each of its shares for every four Gascoyne Resources’ shares. This implies each of the latter’s shares at A$0.41 ($0.3) per share.

The proposal from Westgold is conditional on the scrapping of Gascoyne Resources’ proposed merger with Firefly Resources.

Westgold is a West Australian gold producer engaged in operating six underground mines and various open pit mines.

Gascoyne Resources owns the Dalgaranga Gold Project in Western Australia. Besides, it is engaged in exploring more than 500km of neighboring exploration tenements to extend mine life.

“The combination of Westgold and Gascoyne is strategic and value accretive for both groups as we believe the regional integration of mining, processing infrastructure, exploration assets and people can rapidly expand production capacity above 350,000 oz per annum with excess ore from Westgold’s Cue operations extending Dalgaranga’s operating life,” said Westgold Resources Executive Director Wayne Bramwell.

“With the Westgold announced intention to bid before them, the Gascoyne shareholders now have a superior financial and technical proposal that delivers a premium for their stock and finally the win they deserve,” added Bramwell.

Responding to the offer, Gascoyne Resources said that it is yet to get bidder’s statement from Westgold.

The company added that its board is currently not in a position to make a formal recommendation to shareholders.

“The board of directors is considering its response to the offer and shareholders are advised to take no action in relation to Westgold’s offer. The board of Gascoyne will keep shareholders fully informed of further developments as they occur,” Gascoyne Resources said in a statement.

Source: NS Energy

About Westgold Resources
Westgold Resources Limited is a successful West Australian gold producer with a dominant landholding in the Murchison region of the Mid-West. Its focus is WA and the group operates a ‘hub and spoke model’ with 6 underground mines and several open pit mines providing ore to three processing hubs across the Murchison.

To stop by Westgold’s website, CLICK HERE

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