Westgold’s buyout of Karor removes regulatory hurdles

Advisers say Karor shareholders will have the opportunity to participate in the potential benefits of the merger through a share exchange, will receive immediate cash value and will retain additional flexibility through ownership.

If approved, the deal would enable the combined group to become a mid-sized gold miner, producing about 400,000 ounces of gold per year in Western Australia. It would have combined ore reserves of 3.2 million ounces of gold and resources of 13 million ounces of metal, and a market capitalization of about A$2.2 billion ($1.48 billion).

Karora Resources is focused on increasing gold production at its Beta Hunt and Higginsville mines in Western Australia, having earlier this year completed merger talks with fellow Australian gold miner Ramelius Resources (ASX: RMS).

Last year, Karora produced a record 160,492 ounces of gold, exceeding its 2022 production by more than 26,000 ounces and beating the high end of its full-year guidance range of 145,000-160,000 ounces.