Under the terms of the Offer, Musgrave shareholders will receive 1 fully paid Westgold ordinary share for every 5.37 Musgrave shares held (Offer Consideration). The Offer Consideration implies an undiluted equity value for Musgrave of
The Offer provides Musgrave shareholders the opportunity to see their gold assets developed by a wellfunded, 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
Unfortunately, Westgold considers that the Proposal's confidentiality has now been compromised as evidenced by yesterday's Musgrave share trading volumes which were approximately 6.6 times higher than the average 12-month daily share turnover3 and resulted in a 6.25% share price increase, notwithstanding that Musgrave released no ASX announcement, the gold price was lower and
Commenting on the Offer, Westgold Managing Director
Contact:
Tel: +61 458 564 483
Forward-looking statements
Some statements in this report regarding estimates or future events are forward-looking statements. They include indications of, and guidance on, future matters. Forward-looking statements include, but are not limited to, statements preceded by words such as 'planned', 'expected', 'projected', 'estimated', 'may', 'scheduled', 'intends', 'anticipates', 'believes', 'potential', 'could', 'nominal', 'conceptual' and similar expressions. Forward-looking statements, opinions and estimates included in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward-looking statements are provided as a general guide only and should not be relied on as a guarantee of future performance. Forward-looking statements may be affected by a range of variables that could cause actual results to differ from estimated results and may cause Westgold's actual performance and financial results in future periods to materially differ from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include but are not limited to liabilities inherent in mine development and production, geological, mining and processing technical problems, the inability to obtain any additional mine licenses, permits and other regulatory approvals required in connection with mining and third party processing operations, competition for among other things, capital, acquisition of reserves, undeveloped lands and skilled personnel, incorrect assessments of the value of acquisitions, changes in commodity prices and exchange rate, currency and interest fluctuations, various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions, the demand for and availability of transportation services, the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information. There can be no assurance that forward-looking statements will prove to be correct
Westgold project information
The information in relation to the Mineral Resources and Ore Reserves of Westgold is extracted from the Westgold announcement 'Resources and Reserves Statement 2022'. Refer to the ASX release on
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