Westgold launches scrip bid for Aragon

Shares in Aragon Resources jumped more than 20 per cent today after former ownsimple iron ore processing plant indiaer Westgold Resources announced plans to make a scrip takeover offer that valued the company at $76m.
In the latest deal in the active gold sector, Westgold today said it planned to offer one share for every Aragon security to acquire the 79.9 per cent it does not own.

Westgold had spun off its takeover target in 2007, to focus on its non-core gold, nickel and uranium exploration assets. Westgold took a shine to Aragon’s Central Murchison gold project, acquired early last year, which it has advanced from a resource of 1.5 million ounces of gold to 2 million. This would add to its portfolio, including the Rover-1 gold-copper project in the Northern Territory, to create a “substantial mid-tier mining house” with combined resources of 3 million ounces of gold-equivalent and annual production potential of 200,000 ounces, Westgold said...