Australian gold miner Westgold Resources has completed the previously announced merger with multi-asset mineral resource company Karora Resources.
The newly created mid-tier gold producer will have a pro forma market capitalisation of A$2.5bn ($1.63bn). It is anticipated to be listed both on the Australian Securities Exchange (ASX) and Toronto Stock Exchange (TSX).
According to Westgold Resources, the merged entity will also include advanced greenfield, brownfield targets, and exploration prospects across two of Australia’s most prolific gold fields.
Westgold Resources managing director and CEO Wayne Bramwell said: “Today marks the next phase of Westgold’s evolution into a larger, unhedged and well-funded Australian gold producer.
“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.”
According to the terms of the deal announced in April 2024, each former shareholder of Karora Resources will be issued 2.524 Westgold Resources’ shares and C$0.608 (0.44) in cash.
They will also receive 0.3 of a share of Culico Metals, a new company spun out from Karora Resources, for each Karora Resources share held.
Culico Metals’ assets include a 1% lithium royalty on certain mining interests held by Kali Metals, the right to receive a deferred payment due to Karora Resources relating to the onsale of the Dumont asset and A$10.9m ($7.1m) in cash.
Former Karora Resources shareholders will hold full ownership of Culico Metals upon the closing of the deal.
Karora Resources chairman and CEO Paul Huet said: “The growth of the company from a single mine with no mill to a multi-mine producer with two processing facilities has led us along an upward trajectory for nearly six years.
“The combination of Karora and Westgold to create a new Westgold is a transformative step that will ensure growth continues as an unhedged gold producer in a historically robust gold market.”
Following the completion of the merger, shareholders of Westgold Resources hold about 50.1% of the combined company while the former shareholders of Karora Resources will own approximately 49.9%.
