Westgold announced $177 million offer for Musgraves Minerals gold mine in Cue

Westgold Resources has announced its takeover offer for Musgrave Minerals gold project in Cue. The WA mining company sent an offer of one Westgold share for everyone 5.37 Musgrave shares, which is valued at $177.3 million. Westgold already has mills in Tuckabianna and Bluebird, which are only 40km and 120km north of Musgrave’s gold project in Cue. If accepted, the takeover will give Westgold at minimum 50.1 per cent of ownership of the gold project and acquire all of Musgraves outstanding shares. Musgrave Minerals has their main gold project in Cue, along with additional projects in Mt Magnet and the Musgrave region in South Australia. The Cue project began in 2016 and the company has made significant gold discoveries since launch, the project has defined shallow and high-grade open pit ore, which can be processed at the Murchison Mills. Westgold managing director Wayne Bramwell said this would provide the young project with established infrastructure. “There is a faster and lower risk solution available to Musgrave shareholders to see their Cue gold assets developed in a timely manner,” he said. “The combination of Musgrave’s assets without regional infrastructure and operating teams will fast trade and de-risk the development of Musgrave’s Cue Gold Project.”