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Patty Flat Mine. Source: Westgold
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  • Westgold Resources (WGX) prepares to lodge and open its takeover offer for the battle of Gascoyne Resources (GCY) against Firefly Resources (FFR)
  • Last week, Westgold offered to buy all the shares in GCY in an off-market takeover, claiming its offer values GCY’s shares at 26 cents higher than the Firefly scheme
  • Under the Corporation Act, the bidder’s statement will not be sent to Gascoyne shareholders until 14 days after the statement has been lodged with ASIC
  • Westgold is up 2.26 per cent and is trading at $1.81 per share, while Gascoyne is up 3.7 per cent to trade at 42 cents

Westgold Resources (WGX) is preparing to lodge and open its takeover offer for the battle of Gascoyne Resources (GCY).

Last week, Westgold offered to buy all the shares in GCY in an off-market takeover.

The takeover bid comes after Gascoyne knocked back an offer from Rivet Group, with initial plans underway to merge with Firefly Resources (FFR).

Firefly and Gascoyne agreed to merge back in June, which involved GCY acquiring all of the shares in FFR via a scheme of arrangement.

Now, Westgold wants to throw its hat in the ring for Gascoyne, as it claimed the terms of its offer are “far superior” to Gascoyne’s proposed merger with Firefly.

Westgold is offering one WGX share for every four Gascoyne shares owned, valuing Gascoyne shares at 44 cents each which represents a 26-cent difference to the Firefly scheme of 18 cents per share.

The company said it has received positive engagement from Gascoyne shareholders.

Under the Corporation Act, the bidder’s statement will not be sent to Gascoyne shareholders until 14 days after the statement has been lodged with ASIC and sent to Gascoyne.

Westgold’s Executive Director, Wayne Bramwell, said the Gascoyne Board has not said anything about the two offers.

“The silence from the Gascoyne Board in relation to our Offer is in stark contrast with the volume of calls and emails we are receiving from Gascoyne shareholders wanting our Offer to be considered by their board,” he said.

“Westgold knows the Gascoyne Board is cognisant of its fiduciary duty to its shareholders and would expect the Board to dutifully and proactively act to ensure their loyal shareholders have the opportunity to evaluate and respond to our value accretive proposition.”

On the market today, Westgold was up 2.26 per cent and is trading at $1.81 per share, while Gascoyne was up 3.7 per cent and shares were trading at 42 cents each at 1:10 pm AEDT.

WGX by the numbers
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