Westgold Resources (ASX:WGX) - Executive Chairman, Peter Cook
Executive Chairman, Peter Cook
Source: Westgold Resources/Facebook
Market Herald logo


Be the first with the news that moves the market
  • Westgold Resources (WGX) is offering to buy all the shares on issue in fellow ASX-lister Gascoyne Resources (GCY)
  • The company’s offer involves one WGX share being issued for every four GCY shares held by investors, or roughly 30.3 cents per share
  • WGX says its offer is a premium to the proposed merger with Firefly Resources, arguing that merger would result in an 18.3 cent shareprice
  • Gascoyne is awaiting a more formal bid from Westgold before it will make a recommendation on the latest offer
  • Shares in WGX are down 1.8 per cent at $1.64, while shares in GCY are up a strong 19.4 per cent at 37 cents each just before market close

Westgold Resources (WGX) is offering to buy all the shares on issue in fellow exploration stock Gascoyne Resources (GCY).

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

Latest bid

Under this latest offer, shareholders would receive one WGX share for every four GCY shares held — pricing each Gascoyne share at roughly 30.3 cents per share.

Westgold argues its offer was a premium to the Firefly deal, arguing a deal with FFR would award GCY shareholders only 18.3 cents per share post-merger.

In a statement released on Thursday, WGX said it “believes that the Firefly Scheme is value destructive to Gascoyne shareholders”.

The company also argues its business is a larger and more well-funded
gold company, labelling itself Australia’s fifth largest domestic gold producer.


Gascoyne is remaining quiet regarding the latest offer, with the company stating it was still awaiting an official bid statement.

It said that currently the Board of Gascoyne was not yet in a position to make a formal recommendation to shareholders.

However, the company was considering its response and pledged to keep shareholders informed of its next steps.

GCY shares were trading at 37 cents each, while Westgold Resources dipped 2.1 per cent to $1.64 per share at 3:41 pm AEST.

Shares in GCY are up a strong 19.4 per cent at 37 cents each while shares in WGX are down 1.8 per cent at $1.64 just before market close.

GCY by the numbers
More From The Market Herald

" Solstice Minerals (ASX:SLS) appoints Chief Geologist as drilling kicks off at Hobbes

Solstice Minerals (ASX:SLS) appoints an experienced Chief Geologist ahead of its first drilling campaign at the…

" Electro Optic Systems (ASX:EOS) flags the need for more funds

Electro Optic Systems' (ASX:EOS) shares have dropped after the company flagged the need for more funds.

" Comet Ridge (ASX:COI) finalises acquisition settlement of Mahalo

Comet Ridge (ASX:COI) has completed the acquisition of Australia Pacific LNG's (APLNG) 30 per cent interest…
Iceni Gold (ASX:ICL) - Directors, Brian Rodan and David Nixon

" Iceni Gold (ASX:ICL) receives results from CSIRO UFF+ soil sampling at 14 Mile Well

Iceni Gold (ASX:ICL) receives all results from the CSIRO Ultrafine (UFF+) soil sampling at the 14…