Good find…. Please see here…Westgold Resources is understood to be at the negotiating table with two companies in its backyard just nine months after paying $1.23 billion for Karora Resources.
Multiple sources close to Westgold say chief executive Wayne Bramwell is cracking open the war chest again, this time to feed more gold ore through the company’s three hungry processing mills in the Murchison region.
The acquisitive miner has supposedly made two separate takeover approaches. ASX-listed New Murchison Gold and TSX-listed Monument Mining are believed to be the counterparties
Both have large gold-rich landholdings adjacent to Westgold’s operational footprint surrounding Meekatharra.
Westgold already controls 15.7 per cent of New Murchison’s share register plus has an ore purchase agreement in place with the junior. Monument possesses a chunky tenement package but its Burnakura gold mill is currently idling on care and maintenance.
New Murchison has a market capitalisation of $193 million and Monument’s is $173m, versus their apparent suitor’s $2.7 billion. Freshly minted gold producer Meeka Metals and explorer Caprice Resources could be alternative takeover targets.
Westgold had available liquidity of approximately $480m by the March quarter’s end.
A spokeswoman for Westgold declined to comment specifically on the rumours but said there was “increased interest” in regards to “opportunities for synergy” around the region.
“Westgold is the Murchison’s leading gold company . . . in what continues to be one of Australia’s most prolific gold producing regions,” she said.
“As such, we routinely have conversations with other operators in the region around opportunities for synergy.
“As you’d expect, we are seeing increased interest from smaller miners who have ore, but nowhere to process it, looking for opportunities to monetise their deposits against the backdrop of the current, record-high gold price environment.”
The spokeswoman said the New Murchison ore purchase agreement — announced in December and finalised last month — illustrates Westgold is “happy to explore opportunities to leverage our existing infrastructure” if it leads to “a win for both parties”.
Westgold’s cash and scrip takeover of TSX-listed Karora, which was completed in August, added Goldfields assets to its Murchison-filled portfolio.
Good find…. Please see here… Westgold Resources is understood to...
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