Westgold Resources has commenced a new chapter following the completion of the company’s merger with Karora Resources.
Through the merger, Westgold acquired 100 per cent of the issued and outstanding shares of Karora, creating a top-five Australian gold producer (more than 400,000ozpa) – with a pro forma market capitalisation of $2.5 billion.
The merger has created a mid-tier gold producer operating exclusively in Western Australia with a highly complementary combination of mining and processing assets. The merged company has become one of the largest unhedged Australian gold producers.
Westgold kicks off with a pipeline of organic opportunities, including advanced greenfield and brownfield targets, as well as exploration prospects across two of Australia’s most prolific gold fields.
Westgold 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.
“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. Westgold commences this new growth phase with a robust balance sheet and a plan focussed on realising a potential $281 million in corporate cost savings and $209 million in operating synergies.”
Mr Bramwell said he is proud to officially welcome new shareholders and the Karora team to Westgold.
“Together, as a combined entity, we are positioned to become a leading global mid-tier gold producer focused on building a long term and sustainable business that consistently delivers value to our shareholders.”
Karora Chairman and CEO, Paul Huet, said he is excited for the next chapter in what has been a terrific journey for shareholders and the Karora team.
“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.
“The timing couldn’t be better, in my opinion. I wish to thank all our shareholders and the Karora team for their support and efforts along the way. I look forward to the continued success as we join Westgold to create a stronger future for all our stakeholders.”
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