07/02/2011 - 10:18

Westgold launches bid for Aragon

07/02/2011 - 10:18

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Westgold Resources has announced it seeks to snap up the remaining shares it does not already own in Aragon Resources, to create a mid-tier mining house with potential annual gold production of 200,000 ounces.

Westgold launches bid for Aragon

Westgold Resources has announced it seeks to snap up the remaining shares it does not already own in Aragon Resources, to create a mid-tier mining house with potential annual gold production of 200,000 ounces.

Westgold said it would make an off-market takeover bid, in which it would offer one Westgold share for every Aragon share it does not currently own.

Westgold, which currently holds 20.1 per cent of Aragon, will also offer one option for every Aragon option.

The offer, which values Aragon at $76 million, represents a 35.4 per cent premium to Aragon's closing price on 4 February 2011.

Westgold managing director Andrew Beckwith said the company aimed to creating a substantial mid-tier gold miner with a pro-forma market capitalisation of $135 million.

He said Westgold would base its growth on the development of two major projects, Rover at Tennant Creek in the Northern Territory and the Central Murchison gold mine in Western Australia.

"Our stated corporate goal has been to become an Australian mid-tier gold producer within five years, targeting production of 200,000 ounces of gold equivalent per year," Mr Beckwith said.

"This acquisition is entirely consistent with that growth objective, providing the substantial and growing resource base, the flexibility of developing two major mining operations to provide a long life production profile, a strengthened technical team, stronger balance sheet and excellent growth potential from two large exploration landholdings in world-class prospective regions - both within Australia."

 

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