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Gold Road buys DGO Gold in strategic acquisition
Mid-tier gold producer Gold Road Resources has acquired 100 per cent of the shares in DGO Gold as part of its long-term strategic goal to invest in high-quality projects.
Lauren Croft
Firm: Corrs Chambers Westgarth (Gold Road Resources Limited)
Value: Approximately $308 million
Area: Merger and acquisition
Key players: The Corrs team was led by partners Robert Franklyn and Oliver Carrick, supported by partners Sandy Mak and Adam Foreman, special counsel Marisa Orr and other experts from across the corporate, energy and natural resources, and taxation practices.
Deal significance: Announced in April 2022, Gold Road made a unanimously recommended all-scrip offer of Gold Road shares for every DGO share, implying an offer price of $3.55 per share and an equity value of $308 million (diluted basis). The deal, which was completed earlier this month, has now welcomed new shareholders to the Gold Road registry.
The acquisition includes DGO’s strategic investments in ASX-listed companies De Grey Mining, Dacian Gold and Yandal Resources.
Commenting on the deal, partner Oliver Carrick said: “We are pleased to advise Gold Road on the successful acquisition of DGO. It’s been a privilege to work again with the best-in-class management team at Gold Road.”
Gold Road managing director and chief executive Duncan Gibbs added that “the acquisition of DGO aligns with Gold Road’s strategy to invest in high quality gold projects in tier one jurisdictions”.
“Gold Road views the substantial shareholding in the owner of the high-quality Hemi Gold Discovery, combined with Gold Road’s ownership of the Gruyere Gold mine, as an exciting opportunity to participate in two of the most significant gold discoveries in Western Australia this century,” he said.
Lauren Croft
Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
