Karora Resources has filed and mailed a management information circular for its upcoming annual general and special meeting, where shareholders will cast their vote for the proposed merger between Karora and Westgold Resources.
In April, it was announced that Karora and Westgold would merge under an agreement in which Karora shareholders would receive $6.60 per share for a fully diluted equity value of $1.2 billion.
Once the merger has been implemented, Westgold will take ownership over Karora’s Beta Hunt and Higginsville gold mines, both high-performing assets nestled in the same region of WA as Westgold’s iconic Bluebird and Great Fingall mines. Westgold will also own the Lakewood gold mill near Kalgoorlie.
The merger is set to create “a globally investable, mid-tier unhedged gold producer operating exclusively in Western Australia”, with Karora’s operations expected to produce over 400,000 ounces of gold per annum, therefore establishing Westgold as a top five Australian gold producer.
Other benefits of the deal include having increased diversification across two strategic WA goldfields, holding about $160 million in financial resources and having an enhanced capital markets profile by being listed on the ASX and TSX (Toronto Stock Exchange).
Now, the merger will be voted on by Karora shareholders in a meeting held on July 19 2024 at 10am Toronto time.
The Karora board of directors continue to unanimously recommend that its shareholders vote in favour of the merger.
Once the transaction is completed, Westgold will own 50.1 per cent of the combined company, and Karora will hold the balance.
The merger is expected to be completed on July 31 2024. It is subject to 66.6 per cent of the votes cast by Karora shareholders being in favour of the scheme, approval of the Ontario Superior Court of Justice and regulatory approvals, including approval by the Foreign Investment Review Board.
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