Westgold Resources Limited (ASX: $WGX) Merger Announcement

Westgold Resources Limited (ASX: $WGX) has announced a merger with Karora Resources Inc., where Westgold will acquire 100% of the issued and outstanding common shares of Karora. The merger aims to create a leading mid-tier gold producer in Australia, fully leveraged to the gold price, with a portfolio capable of producing over 400 kozpa from exclusively Western Australian assets. The transaction has been unanimously approved by the boards of directors of both companies and is expected to result in significant operational synergies and enhanced capital market profile. The combined company will have a market capitalization of approximately A$2.2 billion and a strong financial platform with significant free cash flow generation.

Executive Commentary on Merger

The merger with Karora Resources marks a significant milestone for Westgold Resources. This strategic move will position us as a leading mid-tier gold producer in Australia, providing a strong foundation for future growth and value creation. We are excited about the operational synergies and the enhanced capital market profile that this merger will bring, further solidifying our position in the Australian gold mining sector.

Summary of Merger Announcement

Westgold Resources Limited (ASX: $WGX) has announced a merger with Karora Resources Inc. to create a leading mid-tier gold producer in Australia. The merger is expected to result in a company with a production target of over 400,000 ounces per annum, exclusively from Western Australian assets. The transaction has been unanimously approved by the boards of directors of both companies and is anticipated to bring significant operational synergies and enhanced capital market profile. The combined company will have a market capitalization of approximately A$2.2 billion and a strong financial platform with significant free cash flow generation. The merger is subject to shareholder and court approvals, regulatory approvals, and other closing conditions, with an expected completion in late July 2024. The Enlarged Westgold board will comprise current directors of Westgold and two directors from Karora, with the Hon. Cheryl Edwardes AM as the Chair and Wayne Bramwell as Managing Director and CEO. The announcement also includes detailed information about the mineral resources and reserves of the Karora Operations, reported in accordance with the requirements applying to foreign estimates in the ASX Listing Rules. Competent Person Statements have been provided to confirm the accuracy of the disclosed information.