Westgold Resources is set to acquire Western Australian gold miner Karora Resources in a deal expected to significantly expand Westgold’s portfolio.
Karora shareholders will receive $6.60 per share for a fully diluted equity value of $1.2 billion, after which Westgold will take ownership over Karora’s Beta Hunt and Higginsville gold mines, as well as the Lakewood gold mill near Kalgoorlie.
Karora’s operations are expected to produce over 400,000 ounces of gold per year, establishing Westgold as a top five Australian producer.
“The prize here is Beta Hunt’s gold potential,” Westgold managing director and chief executive officer Wayne Bramwell said. “Rarely do you find a gold asset of the quality and potential of Beta Hunt hiding in a nickel belt and drilling is expected to further unlock value at this mine.
“This merger brings Beta Hunt together with Big Bell, the emerging Bluebird and the iconic Great Fingall mine under one Australian management team.
“These assets combined create the foundations of a new Australian gold mining powerhouse that is focused on free cash generation, is internationally relevant and investable and can stand head and shoulders alongside the biggest names in the Australian gold sector.”
Karora chair and chief executive officer Paul Huet welcomed the merger, emphasising the prospects for the combined company are “tremendous”.
“With the combination of Westgold and Karora, we are taking the next step by combining two highly complementary, free cash flow generating asset bases in one of the world’s finest mining jurisdictions to create a premier Western Australian mid-tier gold producer,” he said.
“Karora shareholders will benefit from having very meaningful ownership in a larger, more diversified gold producer with a highly experienced management team located entirely in Western Australia.”
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