Westgold Lodges Bidder’s Statement for Gascoyne Resources Takeover to Lukewarm Response

THE BOURSE WHISPERER: The battle for Gascoyne Resources (ASX: GCY) between Firefly Resources (ASX: FFR) and Westgold (ASX: WGX) entered a new chapter this morning with Westgold releasing its Bidder’s Statement.

Westgold presented its case, saying in its Statement that it, “is aware of the current Firefly Scheme with Gascoyne and presents this Offer as a value accretive alternative to join with a well-funded, debt free and growth orientated Western Australian gold producer.”

“Our Strategy and Offer Westgold’s strategy is to keep Dalgaranga running at full capacity, managed by the current Gascoyne operating team and contractors, to increase gold output by supplementing the ore feed with higher grade ore from our existing Cue mines.

“Westgold has three operating hubs across the Murchison and is seeking to expand its business by acquiring Dalgaranga.

“The combined company will become one of the top 5 Australian domestic gold producers creating a wealth of opportunities for stakeholders.”

Gascoyne informed the market that it had seen the Westgold Bidder’s Statement and that, “alongside its financial and legal advisers, are currently reviewing the Bidder’s Statement and Gascoyne expects to be in a position to issue its Target’s Statement by no later than 29 October 2021”.

“The Company continues to recommend that shareholders REJECT the Westgold Offer and take no action in response to all correspondence from Westgold.

Gascoyne also made reference to Westgold’s announcement to the ASX on 15 October 2021 which directed shareholders to a separate statement on its website, the “Westgold Statement”.

“The Westgold Announcement was indicated to have been made in response to Gascoyne’s announcement regarding a revised Business Plan for Dalgaranga (refer to Gascoyne ASX announcement of 13 October 2021),” Gascoyne said.

“Gascoyne considers that key aspects of the Westgold Statement are misleading and strenuously refutes the statements made by Westgold that the revised Business Plan escalates operational and financial risk to the Company.”

Whichever way this goes in the end, it is currently making for compelling observance.




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