Westgold Resources Limited (ASX: WGX) has announced an all-scrip off market takeover for all issued outstanding shares in Musgrave Minerals Limited (ASX: MGV).
Under the terms of the offer, Musgrave shareholders will receive one fully paid Westgold ordinary share for every 5.37 Musgrave shares held. The offer consideration implies an undiluted equity value for Musgrave of A$177.3M or A$0.30 per share.
The offer provides Musgrave shareholders the opportunity to see their gold assets developed by a well-funded, debt free, and experienced gold miner in a timely and capital efficient manner. It provides an immediate and attractive premium that sidesteps the high risk, dilutive, and arduous process of approval, finance, construction, and start-up of a small, stand-alone processing facility in a region already well serviced with processing infrastructure.
The combination of Westgold and Musgrave is a logical and capital efficient solution that consolidates both groups’ regional assets into a larger scale, more profitable, and highly investable Western Australian focused gold miner. This combined entity would be underpinned by Westgold’s technical capability, team and strong financial position comprising cash and liquid assets of approximately A$180M and nil debt.
To find out more, please visit www.westgold.com.au
