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Gascoyne readies response to Westgold offer

Gascoyne Resources has hired a takeover response team to assist with Westgold Resources’ forthcoming offer to acquire the company.

Westgold announced in September it intended to make an off-market takeover offer for Gascoyne, which would see the gold miner backtrack on its planned merger with Firefly Resources.

The gold miner will offer one Westgold share per four Gascoyne shares for a value of $0.44 per Gascoyne share.

Westgold has flagged it will lodge its bidders statement this week and has suggested that Gascoyne shareholders should accept the pending  offer.

According to Westgold, this is superior to the Firefly merger of $0.183 per Gascoyne share.

Gascoyne has hired Canaccord Genuity as financial advisor and Herbert Smith Freehills as legal adviser for Westgold’s offer.

“The company is ready to respond to the receipt of the bidder’s statement and will be in a position to provide a recommendation to shareholders in respect of the offer following receipt of the bidder’s statement in due course,” Gascoyne stated.

“Until such time as Gascoyne provides its response, Gascoyne reiterates shareholders should take no action in relation to the offer.”

Westgold’s offer has a minimum acceptance condition of 50.1 per cent and that it would provide less risks than the Firefly merger.

“After several tumultuous years the Gascoyne shareholders now see their company at the crossroads yet again,” Westgold executive director Wayne Bramwell said in September.

“The independent technical assessment and valuation report in the proposed Firefly scheme sees Gascoyne merge with a junior explorer offering all the risks associated with early-stage exploration assets.”

Westgold stated the merger would allow Gascoyne shareholders to maintain exposure to Gascoyne’s assets, including the Dalgaranga gold mine, the Mt Egerton project and the Glenburgh project in Western Australia.

The company has appointed Argonaut and HopgoodGanim Lawyers as its advisors during the merger.

Westgold’s share price closed at $1.82 per share on Friday and Gascoyne closed at $0.42 per share on the ASX.

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