WESTGOLD BIDS FOR MUSGRAVE MINERALS

Westgold ASX:WSX has made a bid for Musgrave Minerals, who have had recent success in drilling at the Cue projects in WA. The bid which includes one Westgold share for every 5.37 Musgrave shares, values Musgrave at $177.3m. Musgrave today 6/6/23 finished up 18% to close at $0.30c based on the bid. With the recent Musgrave success of the drilling at their Leviticus Gold Project at Cue WA, including, some very high grade drill intersections, including: 4m @ 20.9g/t Au fm 38m, 3m @ 3.5g/t Au from 51m, 2m @ 41.5 gt/ Au fm 22m. So why would Westgold want to bid for Musgrave.

WHY SHOULD SHAREHOLDERS VOTE YES TO THE OFFER.

Westgold is a well established gold miner in WA and produces around 250,000 ounces of gold a year. Musgrave was intending to build their own process plant to treat the ore from their intended mining operations. Considering Westgold have two gold mines and processing operations within trucking distance of the Musgrave Projects, it seems to make sense that it is an opportunity for Musgrave shareholders to benefit from having the ore from the Musgrave projects, to be processed at the Westgold processing facilities. It also makes sense for Musgrave shareholders, to share in the Westgold success story, with a current annual production of 250,000 ounces Gold a year. It takes the “todays multiple problems” associated with setting up and building a brand new mine with the associated problems of EPA bureaucrats and trying to find experienced employees, mining contractors, expertise and personnel to construct manage a Gold project.

It makes sense that shareholders will be the winners and the grinners if this offer succeeds.

Goldman

Read Previous

CAPRICORN REPORTS STRONG RESULTS

Read Next

MT HOPE DELIVERS FOR CARNABY

Leave a Reply

Your email address will not be published. Required fields are marked *