Shareholders have approved the merger between Westgold Resources (ASX:WGX) and Karora Resources (TSX:KRR) at Karora’s recent annual general and special meetings of shareholders.
The transaction is now expected to become effective on or about 1 August 2024.
With almost all conditions precedent to the transaction now satisfied, completion remains contingent only on receipt of a final order from the Ontario Superior Court of Justice. The hearing is expected on 24 July 2024.
Karora shareholders voted overwhelmingly for the deal to go ahead, with 99% of votes recorded in favour.
Their vote satisfies the condition under the definitive arrangement agreement between Westgold and Karora, which required the approval of, inter alia, at least 66.66% of the votes cast by Karora shareholders at the meeting.
Westgold CEO Wayne Bramwell says the “overwhelming support for this merger from Karora shareholders confirms their support for the independently verified value and the compelling commercial rationale behind this transaction”.
“With the integration of the Karora team and assets, the expanded Westgold has two strategic footprints across two of Western Australia’s most prolific goldfields,” he says.
“The combination creates the foundations of a new Australian gold mining powerhouse that is focused on free cash generation, shareholder returns and building a long-term sustainable business for its shareholders, stakeholders and staff.”
On 17 July, Westgold reported it had received written confirmation from the Foreign Investment Review Board (FIRB) that the Australian Government has no objection to the transaction.
Karora Resources says the combination of Westgold and Karora will create a dual ASX and TSX-listed top-five Australian gold producer.
Write to Adam Orlando at Mining.com.au
Images: Westgold
