The merger between Westgold and Karora Resources has gained the backing of a second major proxy advisory firm, with Glass Lewis also recommending that shareholders approve the transaction.
Last week, Institutional Shareholder Services recommended that Karora shareholders vote for the merger at the upcoming annual and special meeting on July 19.
The transaction, announced in April, requires 66.67% of the votes cast by Karora shareholders at the meeting.
Under the agreement, Westgold will acquire TSX-listed Karora, creating an Australian gold miner producing 400 000 oz/y.
Karora shareholders will receive 2.524 Westgold shares, complemented by A$0.68 a share in cash and 0.30 a share in a new company to be spun off from Karora. The new entity will incorporate Karora’s shareholding in lithium explorer Kali Metals and a 1% lithium royalty on specified mining interests.