On April 7, 2024, Westgold Resources Limited agreed to acquire Karora Resources Inc. in a merger valued at C$1.1 billion, executed through a statutory plan of arrangement under the Canada Business Corporations Act. The transaction offered Karora shareholders 2.5241 Westgold shares, C$0.611 in cash, and 0.30 shares in a new spin-out company, SpinCo, per Karora share, representing a total consideration of C$5.902 per share. This represented a 10.1% premium over Karora’s closing share price on April 5, 2024, and a 25.3% premium to the 20-day volume-weighted average price.

Post-transaction, the combined entity, named Enlarged Westgold, would have a market capitalization of approximately C$1.9 billion. Karora shareholders will hold 49.9% of the new company, while Westgold shareholders will own 50.1%. The merger aims to create a leading mid-tier gold producer with a diversified asset portfolio in Western Australia.

Legal advisors for Westgold included Argonaut PCF, Thomson Geer, and Stikeman Elliott LLP. Karora was advised by CIBC World Markets Inc., Desjardins Capital Markets, Cormark Securities Inc., HopgoodGanim, and Bennett Jones LLP.