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Westgold bows out of Musgrave takeover battle


Westgold Resources has advised the market that it does not intend to increase its takeover offer for Musgrave Minerals, in the wake of a superior offer from Ramelius Resources.

Last month, Westgold made an off-market all-scrip offer of one Westgold share for every 5.37 Musgrave shares. The offer had an implied value of roughly $177.3 million, which Musgrave’s board unanimously urged shareholders to reject.

Just days ago, Ramelius threw its hat in the ring with an approximate $201 million offer of its own, comprising $0.04 in cash and one Ramelius share for every 4.21 Musgrave shares. Musgrave’s board unanimously urged shareholders to accept in the absence of a superior offer.

Westminex, Musgrave’s largest shareholder, has also supported the offer by signing pre-bid agreements representing approximately 9.70 per cent of Musgrave shares on issue on the same terms as the Musgrave directors. The total level of pre-bid commitments is approximately 12.13 per cent.

Musgrave owns the Cue gold project, which hosts an estimated 927,000 ounces of gold. It is located approximately 35 kilometres from the Mt Magnet gold mine.

Musgrave is currently trading at a six-month high of $0.34 per share, while Ramelius trades at a steady $1.33.

Westgold financial year success

This morning Westgold advised the market that it delivered the top end of its full financial year production guidance. The company produces 257,116 ounces of gold for the year on a guidance of 240,000 to 260,000.

“Westgold has delivered safe and profitable ounces for its shareholders in financial year,” Westgold managing director Wayne Bramwell said.

“Westgold commences financial year 2024 debt free and can internally fund organic growth opportunities such as the expansion of Big Bell and commencement of the iconic Great Fingall underground mine.”

The company is currently trading at a one month high of $1.62 per share.

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