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Gold targets Csources industry with hostile and friendly takeover bids in the gold
orporate activity is spreading throughout the West Australian re-

sector and a substantial M&A deal emerging in the burgeoning mining
stand firm services space.
Gascoyne Resources Ltd and Kin Mining NL knocked back respec-
tive proposals from Westgold Resources Ltd and St Barbara Ltd, with
both targets indicating the offers presented were not superior to the
perceived value of their individual business strategies. Meanwhile,
Apollo Consolidated NL was more welcoming of Ramelius Resourc-
es Ltd, with its board accepting a friendly takeover off on October 18.
In the case of resurrected miner Gascoyne, Westgold’s offer re-
quired the proposed merger between the target and Firefly Resourc-
es Ltd to be abandoned, with the bidder declaring the previously
announced combination to be “highly dilutive” to Gascoyne share-
holders.
Following a five-day standoff after Westgold accused the Gas-
coyne board of failing to engage in a “constructive” manner, Gas-
coyne told shareholders to formally reject the offer.
Gascoyne managing director Richard Hay said Westgold was “only
acting in the interests of its own shareholders”.
“While we still await the bidder’s statement from Westgold to sup-
port its intention to make a takeover offer for Gascoyne, the board is
of the view that the offer does not represent a superior alternative to
the proposed merger with Firefly,” Hay said in an ASX statement on
October 13.
“The board firmly believes that Gascoyne combined with Firefly
provides greater value to shareholders than the individual parts. Also,
our major 22% shareholder Deutsche Balaton AG has stated that it
does not intend to accept the Westgold offer in the absence of a su-
perior proposal.”
Gascoyne managing director Richard Hay
Firefly shareholders were due to vote on the proposed merger with

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