Karora Resources shareholders have almost unanimously voted in favour of the company’s merger with Westgold.
Over 99 per cent of votes recorded approved the merger, which will see Westgold takes its place as a top five Australian gold producer.
Toronto-based Karora chair and chief executive officer Pail Andre Huet announced the company’s approval late last week.
“The approval by approximately 99 per cent of the votes cast on the resolutions regarding the proposed merger transaction with Westgold Resources, along with receipt of Foreign Investment Review Board approval, represent two important milestones towards the closing of this transaction,” he said.
“We thank Karora shareholders for their overwhelming support of the combination of Westgold and Karora to create a dual ASX and TSX listed top five Australian gold producer.”
Westgold managing director and chief executive officer Wayne Bramwell thanked Karora shareholders for their support.
“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.
“With the integration of the Karora assets, the expanded Westgold will have strategic footprints across two of Western Australia’s most prolific goldfields.
“With the integration of the Karora team we create an agile Australian gold mining powerhouse that is focused on free cash generation and shareholder returns.”
All that’s remains now is for Westgold to obtain a final order from the Ontario Superior Court of Justice, the hearing for which is expected on July 24.
If the merger is implemented, Westgold will take ownership over Karora’s Australian Beta Hunt and Higginsville gold mines, both high-performing assets nestled in the same region as Westgold’s iconic Bluebird and Great Fingall mines. Westgold will also own the Lakewood gold mill near Kalgoorlie.
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