Westgold to acquire Karora Resources in $808 million deal

Australian Westgold Resources and Karora Resources have agreed to combine in a merger  pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora, in a cash-and-stock deal worth about A$1.23 billion ($808.36 million).

According to Reuters, the combined group will become a mid-tier gold miner producing around 400,000 troy ounces of gold a year in the state and with a market capitalization of around A$2.2 billion.

Karora shareholders will receive 2.524 Westgold fully paid ordinary shares A$0.68 (C$0.612) in cash and 0.30 of a share in a new company to be de-merged from Karora for each Karora share held at the closing of the transaction.

Karora Resources is focused on increasing gold production at its Beta Hunt gold mine and Higginsville gold operations in Western Australia.