Westgold Announces Record Prodution Post Merger

Westgold Resources (ASX / TSX: WGX)

Provided preliminary production results for Q1 FY25.

The Company produced a record 77,369 ounces of gold from its expanded portfolio, achieving an average sale price of $3,723/oz.

 

 

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Westgold

 

 

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Westgold ASX / TSX: WGX
Stage Production + development
Metals Gold
Market cap A$2.56  Billion @ A$2.41
Location Western Australia
Website www.westgold.com.au

 

 

Westgold Reports Record Quarterly Gold Production Post Merger

 

Westgold on track to meet FY25 Guidance with ramp-up back-ended in H2

 

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Perth, Western Australia, 14 October 2024: Westgold Resources Limited (ASX/TSX: WGX, OTCQX: WGXRF – Westgold or the Company) is pleased to provide preliminary production results for Q1 FY25.

The Company produced a record 77,369 ounces of gold from its expanded portfolio, achieving an average sale price of $3,723/oz. For clarity, the merger1 with Karora Resources completed on 1 August 2024 and as such Westgold’s Q1, FY25 result reported here is based upon 3 months of production from the Murchison (52,889 ounces) but only two months of production from the Southern Goldfields operations (24,480 ounces).

If the pre-merger, July output of 13,988 oz from the Southern Goldfields was included in the full Q1, FY25 result, reported Group gold production would have been 91,357oz.
Cash, bullion and liquids.

The Company’s cash, bullion and liquid investments at 30 September was $103.2m – net of the cash consideration and costs relating to the $1.4B Karora merger. With an additional $100m available in its undrawn Revolving Corporate Facility, the Company has $203m in available funds, bolstering liquidity during a period of peak capital investment.

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Westgold Managing Director and CEO Wayne Bramwell commented:

“In August Westgold successfully completed a $1.4B merger that created a top 5 ASX and top 10 TSX listed gold producer and propelled the company into the ranks of the ASX200.

 

“Q1 FY25 delivered our highest quarterly gold production yet, with the results only reflecting two months’ production from our Southern Goldfields operations.

 

“Westgold remains on-track to achieve our stated full-year production guidance, with production back-ended in the second half of the financial year as Bluebird South-Junction expands to the 1.2Mtpa run rate, Beta Hunt reaches expected run rate of >2Mtpa and mining commences at Great Fingall.

 

We look forward to delivering more quarterly production records and cash-build as we optimise, then expand our extended portfolio of assets in two of Australia’s most prolific gold producing regions”

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The live gold price can be found HERE

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold.

.

To read our full terms and conditions, please click HERE




Market Review September 2024 Published

Market Review September 2024

The featured company is Westgold (ASX / TSX: WGX)

The review contains news about watchlist companies making news in the last month. These included a takeover bid for American Creek, and a gold discovery for Calibre Mining.

 

 

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Westgold

 

 

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City Investors Circle Market Review September 2024

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The featured company is Westgold (ASX / TSX: WGX)

The review contains news about watchlist companies making news in the last month. These included a takeover bid for American Creek, and a gold discovery for Calibre Mining.

Notable news releases from all our watchlist companies are included in the news section.

The review featured a review of the silver market and speculates that with silver production falling slightly year on year, and industrial applications relating to green energy rising, the metal is due a good uplift in price moving forwards.

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The month’s news in full can accessed here.

To receive future copies of the Review and invitations to our free to attend company presentations, please mail andrew@city-investors-circle.com

‘ 

Live metal prices prices can be found HERE

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=======

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author shares in some of the companies mentioned.

.

To read our full terms and conditions, please click HERE

 




Westgold Publishes Updated Corporate Update

Westgold (ASX / TSX: WGX)

Published an updated corporate update showing the new company after the Karora Resources acquisition recently.

The Karora acquisition transformed West gold into a top 5 Australian gold producer with a market cap around A$1.8 billion.

 

 

 

 

Westgold

 

 

 

 

 

 

 

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Westgold ASX / TSX: WGX
Stage Production + development
Metals Gold
Market cap A$2.735 Billion @ A$2.90
Location Western Australia
Website www.westgold.com.au

 

 

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Westgold Publishes Updated Corporate Update

 

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Westgold (ASX / TSX: WGX)

Published an updated corporate update showing the new company after the Karora Resources acquisition recently.

The Karora acquisition transformed West gold into a top 5 Australian gold producer with a market cap around A$1.8 billion.

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To read the full news release please click HERE

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The live Spot gold price can be found HERE

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=======

 

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold

.




Westgold Reports Bonanza Gold Zone At Western Flanks

Westgold (ASX: / TSX: WGX)

Provided an update in relation to recent mining activities at the Western Flanks orebody at Beta Hunt. 

Sediment hosted coarse gold mineralisation confirmed within Western Flanks
Provides significant production upside potential.

 

 

.Westgold

 

 

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Westgold ASX / TSX: WGX
Stage Production + development
Metals Gold
Market cap A$2.735 Billion @ A$2.90
Location Western Australia
Website www.westgold.com.au

 

 

Westgold Reports Bonanza Grade Coarse Gold Zones At Western Flanks

 

 

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Perth, Western Australia, 11 September 2024: Westgold Resources Limited (ASX: WGX, TSX: WGX, OTCQX: WGXRF) (Westgold or the Company) is pleased to provide an update in relation to recent mining activities at the Western Flanks orebody at Beta Hunt.

 

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Highlights

Sediment hosted coarse gold mineralisation confirmed within Western Flanks
– providing significant production upside potential.
Mineralisation style is consistent with the bonanza grade “Father’s Day Vein”
– previously mined in the parallel A Zone deposit.
Potential for similar style high grade positions within Beta Hunt – including in
the rapidly evolving Fletcher Zone.

 

 

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Westgold Managing Director and CEO Wayne Bramwell commented:

“Coarse gold occurrences at Beta Hunt, such as the famous “Father’s Day Vein” discovered in 2018, have to date been limited to the A Zone deposit.

 

“The confirmation of this style of mineralisation within the Western Flanks deposit not only provides increased production upside, it also indicates the potential for additional bonanza grade zones within other mineralised structures such as the Fletcher Zone.

 

“Westgold sees a much larger opportunity at Beta Hunt and across our Southern Goldfields assets, with drilling the catalyst to defining their real scale.”

 

 

To read the full news release please click HERE

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The live gold price can be found HERE

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.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold.

.

To read our full terms and conditions, please click HERE




MIning Review 8th September 2024

Mining Review 8th September 2024

The major news this week was Ascot Resources placing their mine into care and maintenance so soon after opening the mine for production.

G Mining Ventures declared commercial production at TZ, and Westgold commenced mining at South Junction.

 

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G MIning

 

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City Investors Circle MIning Review 8th September 2024

 

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The major news this week was Ascot Resources placing their mine into care and maintenance so soon after opening the mine for production. This came as a complete shock, and I sold my shares in the company immediately.

By being in the UK I was able to steal a march on Canadian investors who woke up to the news that I had already digested, and I managed to sell at the open in the 20s before the share price crashed to 16 cents.

This is the second time Ascot has disappointed, and the last for me. They are indicating they need to raise yet more funds!  Sprott, who are a major investor, must be very disappointed.

The CEO needs to walk, and they need to bring in an experienced CEO in my opinion.

 

Ascot represented less than 1% of my portfolio, but a loss still hurts

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G Mining Ventures declared commercial production at TZ, showing how an experienced mamagement team handle a mining startup, please note Ascot!

Westgold commenced mining at South Junction in Western Australia.

Minera Alamos continue to struggle, as their latest Q2 finacial update confirms, so glad I bailed out of this when I did. I notice many newsletter writers are still onboard here, despite all the losses.

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All the signficant news from our watchlist last week is below, click on the link to be taken to the full story.

 

   Ascot Recources places Minto into C & M, Stock Crashes

   Westgold Commenced Mining at South Junction

  G Mining Ventures Declared Commercial Production at TZ Gold Mine

  Ora Banda Mining Gave a Davyhurst Gold Project Update

  Barton Gold High Grade Assays Confirm New Tolmer Gold System

  Minera Alamos Operations Update and Q2 Financials

  Mining Review 1st September 2024

  Market Review August 2024 published

 

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Market Data

Weekly % Price Changes

(US$| unless stated)

Metal Prices Price Weekly % change
Gold price in UK £ £1904 -0.73%
Gold 2497 -1.15%
Silver 27.94 -4.87%
Palladium 899 -9.01%
Platinum 934 -0.64%
Rhodium 4700 -1.05%
Copper 4.04 -3.12%
Nickel 7.15 -4.67%
Zinc 1.22 -4.69%
Tin 13.74 -6.66%
Cobalt 10.79 -1.91%
Manganese 3.02 -0.66%
Lithium 9809 -1.78%
Uranium 79.7 0.63%
Iron Ore 90.8 -10.10%
Coking Coal 174 -10.77%
Thermal coal 139 -3.47%
Metal ETFs Price Weekly % change
GLD 230.63 -1.00%
GDX 36.32 -6.58%
GDXJ 42.62 -8.15%
Sil 30.15 -8.36%
SILJ 10.83 -10.05%
GOEX  (PCX) 29.15 -7.87%
URA 23.18 -9.59%
COPX  38.58 -9.80%
HUI  293.46 -6.94%
ASX:XGD 21.65 -6.28%
Gold / Silver ratio 89.37 3.91%

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

.

To read our full terms and conditions, please click HERE




Westgold Commences Mining at South Junction

Westgold Resources (ASX / TSX: WGX)

Announce the commencement of mining of the South Junction Lode within the Bluebird-South Junction mining complex at Meekatharra.

Ramp up targets a 100kt per month run rate for the Bluebird-South Junction mine by Q3 FY25.

 

 

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Westgold

 

 

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Westgold ASX / TSX: WGX
Stage Production + development
Metals Gold
Market cap A$2.735 Billion @ A$2.90
Location Western Australia
Website www.westgold.com.au

/

Westgold Commences Mining at South Junction

14.93m @ 15.95g/t Au in drill hole 24SJDD029

Perth, Western Australia, 5 September 2024: Westgold Resources Limited (ASX: WGX, TSX: WGX, OTCQX: WGXRF) (Westgold or the Company) is pleased to announce the
commencement of mining of the South Junction Lode within the Bluebird-South Junction mining complex at Meekatharra.

 

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Highlights

Mining of the South Junction Lode has commenced – ramp up targets a 100kt
per month run rate for the Bluebird-South Junction mine by Q3 FY25.

Drilling across South Junction continues to extend the system – with further
recent significant intersections including:
 14.93m @ 15.95g/t Au in hole 24SJDD029
 6.83m @ 15.31g/t Au in hole 24SJDD027
 13.00m @ 3.65g/t Au in hole 24SJDD032
 11.42m @ 4.92g/t Au in hole 24SJDD029
 8.95m @ 4.01g/t Au in hole 24SJDD026

 

South Junction Resource Definition drilling program continues – with 2 surface
rigs targeting deeper extensions of the South Junction and Polar Star Lodes around
800m below surface.

 

 

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Westgold Managing Director and CEO Wayne Bramwell commented:

“Drilling continues to unlock value and point to the potential scale of the Bluebird-South Junction mining complex at Meekatharra.

 

“The commencement of mining on the South Junction Lode is a company milestone, achieved in short order by a focussed team.

 

“This lode is one of many mineralised lodes being tested across the Bluebird-South Junction mining complex, with the Polar Star Lode the next target to being evaluated.

 

“Westgold can now contemplate a significantly larger, multi-decline mining complex emerging on the doorstep of our 1.6-1.8M tpa processing plant.

 

“Each new mining front we define can increase mine output, with the continued expansion of Bluebird-South Junction providing new opportunities to reduce haulage and optimise processing infrastructure across our Murchison business”.

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To read the full news release please click HERE

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The live gold price can be found HERE

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold.

.

To read our full terms and conditions, please click HERE

 




Mining Review 25th August 2024

Mining Review 25th August 2024

Gold hit another new (nominal) all-time high during the week.

Aris Mining, Calibre Mining, and Westgold announced positive drill results.

 

 

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Aris Mining

 

 

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City Investors Circle Mining Review 25th August 2024

Gold hit another new (nominal) all-time high during the week, and ended above the critical $2500 level after Jay Powell suggested strongly that US rate cuts are imminent, sending bullion and stocks upwards in anticipation.

 


 

Aris Mining, Calibre Mining, and Westgold announced positive drill results in a week devoid of any real exciting news. This is the drilling season of course so we expect more excitement in the autumn as summer drill results are released.

Westgold, which aquired Karora Resources a few weeks ago, announced their first set of drill results from Beta Hunt as a combined company, and they didn’t disappoint.

American Creek, itself the subject of an acquisition, also announced drill results announced by JV partner Tudor Gold, at the Treaty Creek project in the Golden Triangle of British Columbia.

All the week’s news stories are listed below, please click the link to read the full story.

  Neometals Announced a Strategic Review

  Westgold Announced Fletcher Zone Drill Results At Beta Hunt

  West Red Lake Gold Mines Initiated a  Surface Drill Program

  Calibre Mining Intercepted High-Grade Gold At Eastern Borosi

  Aris Mining Announced High Grade Drill Results from Segovia Exploration

  American Creek’s JV Partner Drills 13.89 G/T Gold Eq

  Mining Review 18th August 2024

 

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Click here for all company news archives

Market Data

Weekly % Price Changes

(US$| unless stated)

 

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Metal Prices Price Weekly % change
Gold price in UK £ 1902 -1.96%
Gold 2513 0.16%
Silver 29.84 2.79%
Palladium 950 0.85%
Platinum 972.55 1.10%
Rhodium 4750 0.15%
Copper 4.14 1.22%
Nickel 7.55 2.86%
Zinc 1.27 8.55%
Tin 14.75 2.43%
Cobalt 11.02 -6.05%
Manganese 3.03 -10.36%
Lithium 9878 1.96%
Uranium 79.9 -1.72%
Iron Ore 97 3.08%
Coking Coal 178 -4.81%
Thermal coal 146 -3.95%
 
 
Metal ETFs Price Weekly % change
GLD 232.02 0.01%
GDX 39.34 2.21%
GDXJ 47.73 2.53%
Sil 33.81 2.86%
SILJ 12.46 3.15%
GOEX  (PCX) 32.3 2.96%
URA 26.81 5.88%
COPX  43.97 3.95%
HUI  319.42 2.35%
ASX:XGD 23.08 0.87%
Gold / Silver ratio 84.22 -2.56%

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Click HERE for live Spot Metal Prices 

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

.

To read our full terms and conditions, please click HERE

.




Westgold Announce Fletcher Zone Drill Results At Beta Hunt

Westgold (ASX / TSX: WGX)

Provided an overview of the Beta Hunt mine and update in relation to the ongoing Stage 3 Resource Definition drilling program being undertaken at the Fletcher Zone discovery  within the Beta Hunt operation at the Company’s Southern Goldfields Operations.

 

 

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Westgold underground mining at Beta Hunt

 

 

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Westgold Announce Outstanding Drill Results From Fletcher Zone At Beta Hunt – Two additional drill rigs to be deployed to accelerate program

 

Perth, Western Australia, 21 August 2024: Westgold Resources Limited (ASX: WGX, TSX: WGX, OTCQX: WGXRF) (Westgold or the Company) is pleased to provide an overview of the Beta Hunt mine and update in relation to the ongoing Stage 3 Resource Definition drilling program being undertaken at the Fletcher Zone discovery (Fletcher) within the Beta Hunt operation at the Company’s Southern Goldfields Operations.

 

 

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Highlights

Assays from the next 8 holes of the Fletcher Stage 3 program at Beta Hunt
have been received.
Significant intersections include:
 4.00m @ 22.45g/t Au in hole WF440N1-01AR
 5.00m @ 10.95g/t Au in hole WF440N1-21AE
 5.20m @ 10.13g/t Au in hole WF440N1-02AR
 8.00m @ 5.26g/t Au in hole WF440N1-01AR
 7.00m @ 7.97g/t Au in hole WF440N1-21AE
 6.00m @ 6.39g/t Au in hole WF440N1-04AR
 15.00m @ 3.07g/t Au in hole WF440N1-3AR

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Resource Definition program to be accelerated – an additional two drill rigs to
be deployed taking fleet to three at Fletcher.

Maiden Mineral Resource Estimate targeted for late Q2 / early Q3 FY25.

 

 

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Westgold Managing Director and CEO Wayne Bramwell commented:

“The Fletcher Zone is key to expanding gold production at Beta Hunt. It is a proximate, parallel lode to the existing 1.6Moz Western Flanks system and Westgold is currently advancing decline development from Western Flanks towards Fletcher to access a new mining front.

 

“Accelerating drilling will rapidly unlock value at Fletcher. To date Fletcher has only 32 drill holes into this emerging 2km long target and Westgold is now mobilising an additional 2 drill rigs to Beta Hunt to accelerate this program.

 

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Westgold looks forward to expanding production at Beta Hunt and delivering a maiden Mineral Resource Estimate for the emerging Fletcher Zone in late Q2 / early Q3 FY25.”

 

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To read the full news release please click HERE

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The live gold price can be found HERE

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=======

.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold.

.

To read our full terms and conditions, please click HERE




Westgold Declares Maiden South Junction Ore Reserve

Westgold Resources (ASX / TSX: WGX)

Presented the maiden Ore Reserve for its South Junction mine. 

South Junction is a part of a broader Bluebird – South Junction mining complex which is becoming the primary ore source for the Bluebird processing hub at Meekatharra with a 1.2Mtpa run rate targeted from Q3, FY25.

 

 

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Westgold

 

 

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Westgold Declares Maiden South Junction Ore Reserve – Updated

News Release Issued: Aug 16, 2024 (4:01am EDT)

 

Bluebird-South Junction expands to 1.2Mtpa run rate from Q3 FY25

PERTH, Australia and TORONTO, Aug. 16, 2024 /CNW/ – Westgold Resources Limited (ASX: WGX) (TSX: WGX) (OTCQX: WGXRF) – Westgold or the Company) is pleased to present the maiden Ore Reserve for its South Junction mine. 

South Junction is a part of a broader Bluebird – South Junction mining complex which is becoming the primary ore source for the Bluebird processing hub at Meekatharra with a 1.2Mtpa run rate targeted from Q3, FY25.

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Highlights

Bluebird – South Junction Ore Reserve increases to 3.0Mt @ 2.8g/t Au for 277koz

  • 233% increase (+158koz) from the FY23 Ore Reserve post depletion.
  • Contribution from the maiden South Junction Ore Reserve of 2.6Mt @ 2.7g/t Au for 225koz.

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Updated Bluebird – South Junction Mineral Resource exceeds Interim Mineral Resource announced in March 2024 by a further 130koz post depletion of 14koz

  • 61% increase in Indicated Resources.
  • Ore Reserve underwritten by updated Mineral Resource Estimate (MRE) of 11Mt @ 2.8g/t Au for 960koz featuring a Measured and Indicated component of 4.7Mt @ 3.1g/t Au for 465koz Au.

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Further Resource conversion targeted with substantial drilling program ongoing

  • 2 x surface rigs and 2 x underground drill rigs continue to extend and infill the Bluebird – South Junction Mineral Resource.
  • South Junction remains open at depth and to the south along strike/down plunge.

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Production from South Junction to commence in August

  • The significant width of the South Junction orebody enables a highly productive primary / secondary transverse stoping method which will significantly increase production from the Bluebird – South Junction system.
  • Production rate of 1.2Mtpa – from Bluebird-South Junction targeted from Q3 FY25.

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Westgold Managing Director and CEO Wayne Bramwell commented:

“Westgold is rapidly building a mine of significant scale and life at Meekatharra.

 

“The maiden Ore Reserve for South Junction and the rapid expansion of the Bluebird-South Junction mining complex to a 1.2Mtpa run rate by Q3, FY25 has been a remarkable success story and underpins the value in drilling.

 

“A larger, more productive Bluebird-South Junction underground mine is a game changer for our Murchison business. It will reduce the requirement and cost of road haulage of ore from Cue (circa 140km) as the Bluebird-South Junction complex is within 2km of the nearby Bluebird mill.

 

“Westgold will continue to invest in drilling across our portfolio in FY25. With Bluebird-South Junction and Big Bell in the Murchison, buttressed by the expanding Beta Hunt in the Goldfields, we continue to build a diversified platform that can produce more consistent and sustainable long term cashflows and returns to our shareholders.”

 

 

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Figure 1 - Bluebird – South Junction underground complex showing footprint of current Ore Reserve (CNW Group/Westgold Resources Limited)

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South Junction – production online in August, due to lift rates from Q3 FY25

Westgold’s pipeline of organic growth targets is extensive. S

outh Junction at Meekatharra was identified as a priority growth opportunity following the results of initial drill testing of the project in early 20231. A significant drilling program was initiated in January 2024 aimed at extending and infilling South Junction. This program continues, with two rigs active on surface and two in the underground environment.

Westgold recognised the vast scale of South Junction, prompting the undertaking of an interim MRE2 to expedite mine planning studies.

Since March, drilling to increase the confidence in the Inferred portion of the MRE has progressed in parallel with mine planning studies. The results of this drilling have enabled Westgold to undertake an update to the MRE that has seen the substantial conversion of Inferred material to Indicated (See Table 1 and Figure 2). This update includes 14koz of depletion from three months of production on the Bluebird side of the mine.

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To read the full news release, please click HERE

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City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Westgold.

.




Mining Review 4th August 2024

Mining Review 4th August 2024

Karora Resources has traded on the TSX for the last time, after the completion of its merger with Westgold.

Capricorn Metals announced their KGM with a positive upgrade.

 

 

Karora Resources

 

 

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City Investors Circle Mining Review 4th August 2024

Karora Resources has traded on the TSX for the last time, after the completion of its merger with Westgold.

Capricorn Metals announced their KGM with a positive upgrade.

——-

Victoria Gold have finally found their voice and communicated witht he market, and are defiantly stating they will not cease trading, a statement I personally think is very optimistic.

With production stopped and the company incurring the cost of preventing pollution of the local waterways and the lenders having already declared a default on $250 million worth of loans, I cannot see how they will remain solvent in the longer term.

Whistleblowers have made accusations of lax policies on site, and the Yukon government are now participating in the pollution prevention work, and who will pay for that?

I am convinced Victoria Gold will not survive, the remediatiion work alone will have a massive cost, when it starts, and then the First Nations have to approve the resumption of mining, how long will that take?

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News from our watchlist companies last week is listed below, click on the link to be taken to the full story.

  Karora Resources and Westgold Complete Merger

  Capricorn Metals Expands KGP to 1.43 M Ounces of Gold

  Market Review July 2024

  Yukon Government Assisting at Victoria Gold disaster Site

  Gold Road Resources Quarterly Results Conference Call

  Mining Review 28th July 2024

 

Click here for all company news archives

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Market Data

Weekly price changes

(US$ unless stated)

 

Metal Prices Price % Weekly change
Gold price in UK £ 1910 2.91%
Gold 2442 2.26%
Silver 28.56 2.22%
Palladium 884 -0.34%
Platinum 965 1.66%
Rhodium 4650 0.00%
Copper 4.08 0.99%
Nickel 7.2 2.56%
Zinc 1.19 0.85%
Tin 13.44 1.90%
Cobalt 11.76 0.00%
Manganese 3.62 -9.73%
Lithium 10432 -7.17%
Uranium 84.3 2.80%
Iron Ore 102.7 3.63%
Coking Coal 197 -3.90%
Thermal coal 144 4.35%
 
 
Metal ETFs Price % change
GLD 225.34 2.13%
GDX 36.48 0.00%
GDXJ 43.7 -1.64%
Sil 31.69 -4.66%
SILJ 11.46 -4.90%
GOEX  (PCX) 28.51 -2.70%
URA 24.52 -10.97%
COPX  41.18 -3.29%
HUI  293.27 0.20%

 

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#

Click HERE for live Spot Metal Prices 

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=======

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

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To read our full terms and conditions, please click HERE

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Karora and Westgold Merger Nears Completion

Westgold Resources (ASX: WGX)

Updated in relation to the proposal to acquire 100% of the issued and outstanding common shares of Karora Resources Inc. by way of a court-approved plan of arrangement under the Canada Business Corporations Act.

On 17 July 2024, Westgold received written confirmation from the FIRB that the AustralianGovernment has no objection to the Transaction under the Foreign Acquisitions and Takeovers Act 1975.

 

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Karora Resources

 

 

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Karora Resources TSX: KRR
Stage Production + Development + Exploration
Metals Gold + Nickel
Market cap C$1.23 Billion @ C$6.89
Location Kalgoorlie, Western Australia
Website karoraresources.com

 

FIRB Approval Received for Westgold and Karora Transaction

Westgold Resources Limited (ASX: WGX, OTCQX: WGXRF – Westgold or the Company) provides the following update in relation to the proposal to acquire 100% of the issued and outstanding common shares of Karora Resources Inc. (Karora) by way of a court-approved plan of arrangement under the Canada Business Corporations Act (Transaction).

On 17 July 2024, Westgold received written confirmation from the Foreign Investment Review Board (FIRB) that the Australian Commonwealth Government has no objection to the Transaction under the Foreign Acquisitions and Takeovers Act 1975 (Cth).

The FIRB approval condition contained in the definitive Arrangement Agreement between Westgold and Karora in respect of the Transaction has now been satisfied.

Pending approval by Karora shareholders at Karora’s upcoming annual general and special meeting of shareholders on 19 July 2024 and final court orders, Westgold targets completion of the Transaction on or about 31 July 2024.

The Transaction has been unanimously approved by the respective boards of directors of Westgold and Karora.

 

The Karora board of directors (Karora Board) has unanimously determined that the Transaction is in the best interests of Karora and is fair to Karora shareholders.

Accordingly, Westgold’s offer to acquire Karora pursuant to the Transaction is unanimously recommended by the Karora Board. All directors and senior officers of Karora entered into agreements with Westgold to vote in favour of the Transaction.

 

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Indicative Timetable

Event / Action Indicative Timing (Toronto)
Karora shareholder Meeting 19 July 2024
Final order court hearing 24 July 2024
Complete Transaction 31 July 2024

This announcement is authorised for release to the ASX by the Board.
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.To View Westgold’s historical news, please click here

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..

To read the full news release, please click HERE

.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Karora Resources.

.

.

To read our full terms and conditions, please click HERE

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Karora Shareholders Recommended to Approve The Westgold Proposed Arrangement

Karora Resources Inc. (TSX: KRR)

Announced that Institutional Shareholder Services (“ISS”), a leading independent proxy advisory firm, released a repor recommending that Karora shareholders vote in favour of the previously announced statutory plan of arrangement with Westgold Resources Limited.

 

 

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Karora Resources

 

 

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Karora Resources TSX: KRR
Stage Production + Development + Exploration
Metals Gold + Nickel
Market cap C$1 Billion @ C$5.97
Location Kalgoorlie, Western Australia
Website karoraresources.com

 

 

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Leading Independent Proxy Advisory Firm ISS Recommends Karora Resources Shareholders Approve The Proposed Arrangement With Westgold Resources

 

TORONTO, July 8, 2024 /CNW/ – Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) today announced that Institutional Shareholder Services (“ISS”), a leading independent proxy advisory firm, released a report (the “ISS Report”) recommending that Karora shareholders (“Karora Shareholders”) vote in favour of the previously announced statutory plan of arrangement (the “Arrangement”) with Westgold Resources Limited (“Westgold”). 

The ISS Report states, in addition to other things, that “The arrangement carries sound strategic logic as the combined company is expected to deliver meaningful cost synergies, benefit from scale and a stronger financial position, and be more diversified.

Karora Shareholders will be able to participate in the upside represented by the combined company through the share consideration, receive some degree of certain and immediate value through the cash portion, and retain additional optionality through the ownership of Spinco.”

 

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Details of the Transaction

The Arrangement is outlined in Karora’s management information circular (the “Circular”) dated June 17, 2024 prepared in respect of the annual general and special meeting (the “Meeting) of Karora Shareholders to be held on July 19, 2024. 

The proxy deadline for voting is 10:00 a.m. (Toronto time) on July 17, 2024.

The Arrangement is subject to the terms and conditions of an arrangement agreement dated April 8, 2024, as amended (the “Arrangement Agreement”), entered into among Karora, Westgold, 1474429 B.C. Ltd., a wholly owned subsidiary of Westgold, and Culico Metals Inc. (formerly 1000853883 Ontario Inc.) (“SpinCo”), a wholly owned subsidiary of Karora, all as more particularly described in the Circular.

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Under the Arrangement Agreement, the parties have agreed to effect the Arrangement, pursuant to which:

  • Westgold will indirectly acquire all of the issued and outstanding common shares of Karora (“Karora Shares”), and Karora Shareholders will be entitled to receive for each Karora Share held immediately prior to the effective time of the Arrangement, (i) $0.608 in cash and (ii) 2.524 fully paid ordinary shares in the capital of Westgold (each one whole share, a “Westgold Share”).
  • Karora will assign, or cause its applicable direct or indirect subsidiaries to assign, all of their respective ownership interest in the Transferred Assets (as defined in the Circular) to SpinCo; and
  • Karora will spin out to the Karora Shareholders, at the effective time of the Arrangement, 0.3 of a SpinCo Share for each Karora Share held as at the effective time.

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Special Committee and Board Recommendations

The board of directors of the Corporation (the “Karora Board”) believes that the Arrangement will deliver a premium and other benefits to Karora Shareholders. 

The Karora Board and the special committee established by the Karora Board (the “Special Committee”) have unanimously determined that the Arrangement is in the best interests of the Corporation and that the Arrangement is fair to the Karora Shareholders.

Karora Shareholders are encouraged to read the Circular, including pages 37 to 39 of the Circular, for a detailed description of the “Reasons for the Arrangement”.

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To View Orla Mining’s historical news, please click here

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To read the full news release, please click HERE

.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Karora Resources.

.




Karora Resources Files Management Information Circular

Karora Resources (TSX: KRR)

Announced that it has filed and is in the process of mailing the management information circular and related materials for the annual general and special meeting of shareholders of Karora to be held on July 19th, 2024. 

 

 

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Karora Resources

Gold in drill core from Beta Hunt mine, Western Australia

 

 

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Karora Resources TSX: KRR
Stage Production + Development + Exploration
Metals Gold + Nickel
Market cap C$1 Billion @ C$5.97
Location Kalgoorlie, Western Australia
Website www.karoraresources.com

 

 

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Karora Resources Files Management Information Circular In Connection With Proposed Arrangement

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Karora Board and Special Committee unanimously recommend that Shareholders vote FOR the Arrangement

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TORONTO,June 21, 2024/CNW/ – Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) today announced that it has filed and is in the process of mailing the management information circular (the “Circular”) and related materials for the annual general and special meeting (the “Meeting”) of shareholders of Karora (“Karora Shareholders”) to be heldJuly 19, 2024.

 

At the Meeting, Karora Shareholders will be asked to consider and vote on, among other things, a special resolution (the “Arrangement Resolution”) approving a statutory plan of arrangement pursuant to Section 192 of theCanada Business Corporations Act(the “Arrangement”), subject to the terms and conditions of an arrangement agreement datedApril 8, 2024(the “Arrangement Agreement”) entered into among Karora, Westgold Resources Limited (“Westgold”),1474429 B.C. Ltd., a wholly owned subsidiary of Westgold, and Culico Metals Inc. (formerly 1000853883 Ontario Inc.) (“SpinCo”), a wholly owned subsidiary of Karora, all as more particularly described in the Circular.

The board of directors of the Corporation (the “Karora Board”) believes that the Arrangement will deliver a premium and other benefits to Karora Shareholders.

The Karora Board and the special committee established by the Karora Board (the “Special Committee”) have unanimously determined that the Arrangement is in the best interests of the Corporation and that the Arrangement is fair to the Karora Shareholders.

The Arrangement can only proceed if, among other conditions, it receives the approval of not less than two-thirds (66⅔%) of the votes cast on the Arrangement Resolution by Karora Shareholders in person or by proxy at the Meeting.

The Special Committee and the Karora Board reviewed and considered a significant amount of information and considered a number of factors relating to the Arrangement, with the benefit of advice from Karora’s management, and the respective financial advisors and legal advisors of the Special Committee and the Karora Board.

The Special Committee and the Karora Board unanimously recommends that Karora Shareholders vote FOR the Arrangement Resolution. See pages 37 to 39 of the Circular for a detailed description of the “Reasons for the Arrangement”.

 

Under the Arrangement Agreement, the parties have agreed to effect the Arrangement, pursuant to which:

  • Karora will assign, or cause its applicable direct or indirect subsidiaries to assign, all of their respective ownership interest in the Transferred Assets (as defined in the Circular) to SpinCo;
  • Karora will spin out to the holders of Karora Shares at the Effective Time 0.3 of a SpinCo Share for each Karora Share held as at the Effective Time; and
  • Westgold will indirectly acquire all of the issued and outstanding Karora Shares, and Karora Shareholders will be entitled to receive for each Karora Share held immediately prior to the Effective Time, (i)$0.608in cash and (ii) 2.524 fully paid ordinary shares in the capital of Westgold (each one whole share, a “Westgold Share”).

 

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To View Karora Resources’ historical news, please click here

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To read the full news release, please click HERE

.

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Karora Resources.

.

To read our full terms and conditions, please click HERE




Karora Resources and Westgold Merger Presentation

Karora Resources (TSX: KRR)

Released a joint presentation with Westgold explaining the dynamics of their proposed agreed merger.

The new company will be well financed and a 400,000 Oz Au PA gold producer, with exploration potential.

 

 

/

Karora Resources

 

 

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Karora Resources TSX: KRR
Stage Production + Development + Exploration
Metals Gold + Nickel
Market cap C$967 million @ C$5.36
Location Kalgoorlie, Western Australia
Website karoraresources.com

 

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Karora Resources and Westgold Merger Presentation

 

 

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Karora Resources (TSX: KRR) released a joint presentation with Westgold explaining the dynamics of their proposed agreed merger.

The new company will be well financed and a 400,000 Oz Au PA gold producer, with exploration potential.

The new company will be listed on both the ASX and TSX.

The merger should be completed by mid-June.

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To view the merger presentation video, please click HERE

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The live Spot gold price can be found HERE

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=======

City Investors Circle is based in the financial district in the City of London

We present interesting and exciting junior mining companies listed on the ASX and TSX stock exchanges to a group of city professionals, and private investors, all of whom are active investors with a mandate to invest in junior mining companies.

Our audience is selected and invited individually to ensure interest and relevance for the presenting company.

Meetings are non deal, small group, highly focused and engaged, with a lively Q and A to follow the main presentation.

We create awareness, and maintain interest in presenting companies by disseminating their future news to our entire investor group via email, social media, and our Monthly Review newsletter.

If you wish to present to our select group of active mining investors, please email andrew@city-investors-circle.com

.

=======

,

This website is not sponsored, we are truly independent, and will always remain so.

Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

All information used in the preparation of this communication has been compiled from publicly available sources that we believe to be accurate and reliable, however, we cannot, and do not, guarantee the accuracy or completeness of this.

These articles are for awareness and informational purposes only, and are not recommendations in any form.  Always consult an investment professional.

.

Disclosure

At the time of writing the author holds shares in Karora Resources.

.

To read our full terms and conditions, please click HERE




Karora Announces Merger With Westgold

Karora Resources. (TSX: KRR)

Karora and Westgold Resources Limited (ASX: WGX) have agreed to combine in a merger pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora by way of a statutory plan of arrangement under the Canada Business Corporations Act.

 

 

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Karora Resources

 

 

 

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Karora Resources TSX: KRR
Stage Production + Development + Exploration
Metals Gold + Nickel
Market cap C$967 million @ C$5.36
Location Kalgoorlie, Western Australia

 

 

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Comment

I find this news incredibly disappointing, Karora was one of my favourite stocks, and I always felt they would become a predator of other projects in Western Australian, rather than allowing themselves to be picked off so easily.

I find the takeout price opportunistic, and I have sold down my holding by over 50% already.

 

TORONTO, April 7, 2024 /CNW/ – Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora”) and Westgold Resources Limited (ASX: WGX) (OTCQX: WGXRF) (“Westgold”) have agreed to combine in a merger pursuant to which Westgold will acquire 100% of the issued and outstanding common shares of Karora (“Karora Shares”) by way of a statutory plan of arrangement under the Canada Business Corporations Act (“CBCA”) (“Transaction”).

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Transaction Highlights:

  • Karora shareholders will receive 2.5241 Westgold fully paid ordinary shares (“Westgold Shares“), A$0.68 (C$0.611) in cash and 0.30 of a share in a new company to be spun-out from Karora (“SpinCo“) for each Karora Share held at the closing of the Transaction (“Offer Consideration“). The Offer Consideration represents approximately A$6.60 (C$5.902) per Karora Share based on Westgold’s closing share price on the ASX of A$2.28 on 5 April 2024.
  • SpinCo’s assets will comprise Karora’s existing 22.1% interest in Kali Metals Limited (ASX:KM1) (“Kali“), a 1% lithium royalty on certain mining interests held by Kali, the right to receive a deferred consideration payment due to Karora relating to the on-sale of the Dumont asset and A$6 million (C$5 million2) in cash. SpinCo will be owned 100% by existing Karora shareholders.
  • The Offer Consideration represents a 10.1% premium to Karora’s closing share price on the Toronto Stock Exchange (“TSX“) of A$5.995 (C$5.3602) on 5 April 2024 and a 25.3% premium to Karora’s and Westgold’s 20-day volume weighed average price (“VWAP“) on the TSX of A$5.552 (C$4.9642) and on the ASX of A$2.421 (C$2.1642) up to and including 5 April 2024.
  • Upon completion of the Transaction, Westgold shareholders will own approximately 50.1% of the combined company (Westgold after completion of the Transaction referred to as “Enlarged Westgold“) and former Karora shareholders will own approximately 49.9%.
  • Enlarged Westgold will have a market capitalization of approximately A$2.2 billion2 (C$1.9 billion2).
  • Enlarged Westgold will have a portfolio of assets from an exclusively Western Australian asset base, a clear pipeline of growth projects and high-quality exploration targets.
  • The Enlarged Westgold intends to apply for quotation of its Westgold Shares on the TSX on completion of the Transaction.
  • The Transaction has been unanimously approved by the boards of directors of Westgold and Karora, and Karora’s board of directors will recommend that the shareholders vote in favour of the Transaction.
  • Directors and members of senior management of Karora holding approximately 1.2% of Karora Shares have entered into voting support agreements pursuant to vote their Karora Shares in favour of the Transaction at the meeting of shareholders to be called by Karora to approve the Transaction (“VSAs“). In addition, key institutional shareholders with a combined shareholding of approximately 9% including Eric Sprott have signed VSAs or otherwise have indicated they would support the Transaction.
  • The Transaction represents a transformational step change in growth for both Westgold and Karora shareholders:
    • Creates a globally investable, mid-tier gold producer operating exclusively in Western Australia with a highly complementary combination of mining and processing assets, people and balance sheet;
    • Top 5 largest, ASX listed Australian gold producer based on the pro forma market capitalization;
    • One of the largest unhedged Australian gold producers on completion of the Transaction providing investors with full exposure to the gold price3;
    • Combined pipeline of advanced organic growth options and exploration targets across Karora’s Beta Hunt and Higginsville properties and Westgold’s Murchison and Bryah properties;
    • Estimated operating synergies4 of A$209 million (C$187 million2) and estimated corporate savings5 of A$281 million (C$251 million2);
    • Robust balance sheet with financial resources of circa A$160 million (C$143 million2) in cash and liquidity through Westgold’s existing corporate revolver facility (subject to requisite consents) and following full repayment of Karora’s existing A$44 million (C$39 million2) revolving facility to support an accelerated resource development program at the Beta Hunt Fletcher Zone and Bluebird-South Junction;
    • Enhanced capital markets profile with increased scale, trading liquidity and quality to be attractive to both gold and generalist investors across ASX, TSX and OTCQX;
    • Significant re-rating potential via increased scale and increased index weighting, such as the GDX and GDXJ indices; and
    • Combined board of directors comprising experienced mining professionals with a proven track record of maximizing value for shareholders.

 

 

Karora Chairman and CEO, Paul Huet commented:

“For the last two years, Karora has watched Mr. Bramwell and the team consistently unlock material value for shareholders at Westgold.

“One of the more unique aspects of this transaction is a very strong cultural fit between both companies which will serve shareholders of the enlarged company well for a very long time.

“The merger is estimated to unlock approximately A$490 million of operational, G&A and capex synergies while shareholders will become proud owners of the largest unhedged gold producer in Australia at completion of the Transaction – certainly a compelling opportunity in the current gold price environment.

“The team at Karora have worked diligently to execute on our strategy to build the next +200 kozpa Australian gold producer.

“We have delivered value to shareholders through a disciplined growth approach by investing in our cornerstone asset in Beta Hunt, which will be fully ramped up to 2 Mtpa7 later this year, our pipeline of projects at Higginsville and through strategic asset acquisitions such as the Lakewood Mill and Spargos Gold Mine to establish the next emerging junior gold producer in the Western Australia gold fields.

“With the combination of Westgold and Karora, we are taking the next step by combining two highly complementary, free cash flow generating asset bases in one of the world’s finest mining jurisdictions to create a premier Western Australian mid-tier gold producer.

“Karora shareholders will benefit from having very meaningful ownership in a larger, more diversified gold producer with a highly experienced management team located entirely in Western Australia.

“The prospects for the combined company are tremendous, with over 3,200km2 of combined exploration tenements in Australia’s most prospective gold mining regions coupled with a significantly enhanced balance sheet poised and ready to deploy into a highly compelling combined growth and exploration strategy.

“The combination provides Karora shareholders with significant exposure to one of the largest Australian gold producers with significant potential for an eventual share price re-rate as the operational synergies and enhanced scale of the combined portfolio are realized.”

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To read the full news release please click HERE

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Live spot metal prices can be found HERE

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If you need clarification of any information contained in this note, or have any questions, I will be delighted to assist – Please email andrew@city-investors-circle.com

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Companies featured here have either presented to the Circle in London, or have been selected because they are considered to have interesting projects, in good jurisdictions, run by an experienced management team.

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Disclosure

At the time of writing the author does not hold shares in Karora Resources

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