Aragon Resources (ASX: AAG) shareholders are rapidly accepting the Westgold Resources (ASX: WGR) off-market takeover offer.
Aragon directors last week unanimously recommended the offer, in the absence of a superior proposal.
Westgold now holds 43.98% of Aragon, a big jump from 40.95% a day earlier.
The potential new entity will hold resources of 3 million gold ounces-equivalent with a reserve of 0.6 million contained gold ounces.
This provides annual production potential of 200,000 gold ounce equivalent within 5 years.
Aragon is based in Western Australian, with Westgold holding a 20.1% shareholding before the takeover offer, after spinning the company off in August 2007 to focus on non-core gold, nickel and uranium exploration assets.
Aragon acquired the Central Murchison Gold Project in early 2010 and has advanced the project to a resource base of 2 million gold ounces.
Westgold’s major 32% shareholder, Metals X (ASX: MLX), also holds a direct 8.7% shareholding in Aragon.
Metals X (ASX: MLX) will hold 22.5% of the combined group.