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Westgold clears another hurdle in Karora takeover

Mining leaders making moves

Westgold is one step closer to taking over Canadian company Karora Resources after the Takeovers Panel rejected opposition from Ramelius.

The Takeovers Panel declined to make a ‘declaration of unacceptable circumstances’ over the deal after Ramelius launched an application in May seeking orders on the standstill restrictions contained in a mutual confidentiality deed it made with Westgold in 2023.

“The Panel did not consider Westgold’s continued reliance on the standstill in the confidentiality deed to be inappropriate nor did the Panel consider that there was reason to question further whether there were reasonable grounds to support Westgold and Karora’s disclosed estimates of operating and corporate synergies,” the Takeovers Panel said in a statement.

Once interested in Karora itself, Ramelius has confirmed repeatedly takeover talks are no longer on the table.

“Furthermore, for the avoidance of any doubt, Ramelius reconfirms that it ceased all discussions with Karora regarding a potential control transaction involving Ramelius and Karora on or around 28 March 2024, as previously noted by Ramelius,” Ramelius said in a statement.

Karora and Westgold’s boards have unanimously approved the deal between the companies, which is now set to be completed by the end of July.

If the merger is implemented, Westgold will take ownership over Karora’s Beta Hunt and Higginsville gold mines, both high-performing assets nestled in the same region as Westgold’s iconic Bluebird and Great Fingall mines. Westgold will also own the Lakewood gold mill near Kalgoorlie.

The merger is set to create “a globally investable, mid-tier unhedged gold producer operating exclusively in Western Australia”, with Karora’s operations expected to produce over 400,000 ounces of gold per annum, therefore establishing Westgold as a top five Australian gold producer.

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