Westgold Resources (ASX:WGX) has secured approval from the Foreign Investment Review Board (FIRB) to acquire all of the shares of Karora Resources (TSX:KRR), via a court-approved plan of arrangement.
On 8 April, both companies mapped out plans to create a $2.2 billion, plus 400,000 ounce per annum gold miner. Under the agreement, Westgold will offer Karora shareholders 2.524 shares, $0.68 in cash, and 0.30 of a share in the new company to demerge from Karora, for each share held.
The FIRB approval condition contained in the definitive agreement between both companies has been satisfied. Westgold and Karora will seek approval at an upcoming annual general and special meeting on 19 July.
Westgold, which has a market capitalisation of $1.3 billion, expects to complete the transaction around the end of this month.
Karora Resources is a multi-asset resource company primarily focused on acquiring, exploring, evaluating, and developing precious metal properties.
Westgold Resources is a Western Australian-focused gold mineral forecasting between 240,000 and 260,000 ounces of gold production in the financial year 2023.
Write to Aaliyah Rogan at Mining.com.au
Images: Westgold Resources
