Westgold Resources and Karora Resources have merged to create a leading mid-tier gold producer operating exclusively in Western Australia with a pro forma market capitalization of A$2.5 billion.
“Today marks the next phase of Westgold’s evolution into a larger, unhedged and well-funded Australian gold producer,” said Westgold Managing Director and CEO Wayne Bramwell. “Our value proposition is significantly enhanced with an expanded team, quality operating assets and an enviable pipeline of exploration prospects across two of Australia’s most productive gold fields.”
“The merger with Karora upsizes our Western Australian operating platform – an extensive and established asset base that can be increasingly leveraged for free cash generation and growth,” Bramwell added.
Under the terms of the agreement, Karora Managing Director, Australia Leigh Junk and Karora Director Shirley In’t Veld have been appointed to the Westgold board. The Hon. Cheryl Edwardes AM will continue in her role as chair, as will the other members of the incumbent board. Meanwhile, Karora Chair and CEO Paul Huet will continue with Westgold in a special advisory role to the board for six months, subject to contract finalization.
Bramwell noted that the merger brings together the Beta Hunt nickel-gold mine, Bluebird gold mine, and historic Big Bell and Great Fingall gold mines under one team.
Source: Westgold Resources