Westgold has announced it has accepted the $92 million merger deal floated by substantial shareholder Metals X. The deal will see Westgold shareholders receive 11 Metals X shares for every 10 Westgold shares held, based on the closing price of Metals X shares on 9 May.

 

The final merged company will include a portfolio including:

  • growth assets including the producing Renison Tin Project (Metals X share 50%) and the Rentails Tin Project in Tasmania, the massive Wingellina Nickel Project and Central Murchison Project in WA and the Rover 1 Copper-gold Project in NT
  • An experienced evaluation and development team comprising members of both companies capable of rapidly progressing the combined assets of the two groups
  • Cash and listed investments in excess of $100 million
  • A market capitalisation in excess of $330 million with the potential for a marketing re-rating

 

Westgold’s Chairman, Michael Atkins, said that the merger will give the company’s a stronger market valuation, which will reflect the company’s strong asset base.

 

Metals X is currently the largest shareholder of Westgold with a shareholding interest of 26.98% and has been Westgold’s largest shareholder since 2007. Metals X currently holds two nominee director positions on the board of Westgold, being Mr Peter Cook and Mr Warren Hallam.