Karora and Westgold set for merger
The Karora Resources board has unanimously recommended shareholders back its upcoming merger with Westgold Resources (ASX: WGX).
For the merger to proceed, two-thirds of Karora shareholders will be required to vote in favour of the transaction on July 19.
All Karora directors and senior officers have entered into agreements with Westgold to vote in favour of the transaction.
The merged company will operate across two WA goldfields which includes four production centres. It is expected to become a top five Australian gold producer, with a market cap of $2.4b and 400kozpa of production exclusively from WA.
The new entity will be listed on both the ASX and Toronto stock exchange with financial resources of about $160m.
A final court hearing is scheduled for July 24, with completion of the transaction expected on July 31.
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