Westgold Resources has today announced the Foreign Investment Review Board (FIRB) has given its approval for the merger with Karora Resources.
The FIRB confirmed this week that the Australian Government has no objection to the transaction under the Foreign Acquisitions and Takeovers Act 1975.
The FIRB approval condition contained in the definitive arrangement agreement between Westgold and Karora has now been satisfied.
Pending approval by Karora shareholders at Karora’s upcoming annual general and special meeting of shareholders on July 19 and final court orders, Westgold aims to have the deal sealed by July 31.
The transaction has been unanimously approved by the respective boards of directors of Westgold and Karora.
The Karora board of directors has unanimously determined that the transaction is in the best interests of Karora and is fair to shareholders.
All directors and senior officers of Karora entered into agreements with Westgold to vote in favour of the transaction.
Leading advisory firms threw their support behind the merger this week, recommending Karora shareholders vote in favour of the merger.
Independent firm Institutional Shareholder Services (ISS) was the first to make the call, confirming Karora shareholders will see “immediate value”.
Westgold managing director and chief executive officer Wayne Bramwell has said the deal will firmly establish the company as a mid-tier gold producer.
“With their vote for the transaction, Karora shareholders will create a larger internationally investible gold company that is unhedged, well-funded and fully leveraged to the gold price,” Bramwell said.
“The new Westgold will have strategic footprints across two of Western Australia’s most prolific goldfields and have an enhanced team and platform to continue to deliver returns to its shareholders.”
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