Aragon endorses Westgold takeover

Perth based gold explorer Aragon Resources has recommended its shareholders accept Westgold Resources' $76 million friendly takeover offer, after independent analysis found it fair and reasonable.

Westgold announced the bid early last month, in which it offered one Westgold share for every Aragon share it does not currently own.

Westgold, which has received early acceptances to the offer that have increased its shareholding to 27.2 per cent, also offered one option for every Aragon option.

Westgold chairman Michael Atkins said the offer was a "rare and golden opportunity" for investors.

"The new combined entity will have a stronger balance sheet, greater market capitalisation and extensive growth prospects making the Company more attractive to institutional investors," Mr Atkins said in a statement to the ASX.

"We are keen to complete the consolidation and realise the value inherent in the group's assets".