Westgold and Karora complete merger

Westgold Resources (ASX: WGX) and Karora Resources have completed their merger to create a leading mid-tier gold producer and international gold company.

This follows Westgold’s acquisition of 100% of the issued and outstanding shares of Karora.

Westgold managing director and chief executive Wayne Bramwell says this 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,” he said.

“The merger with Karora upsizes our WA 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 $281m (C$254m) in corporate cost savings and $209m (C$189m) in operating synergies.”

Karora chairman and chief executive Paul Huet says he is excited for this next chapter.

“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,” he said.

“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.”