Aragon Resources (ASX: AAG) will be removed from the ASX at the end of trading today, at the request of the company, following the compulsory acquisition by Westgold Resources (ASX: WGR).
The new entity formed by the Westgold off-market acquisition of Aragon will be substantial, holding 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.
Last month Westgold kicked off compulsory acquisition of the remaining last few per cent of Aragon shares.
Adding some spice to this new entity, which has come about after directors of Aragon unanimously recommended the offer, is that both companies have made some decent gold strikes during the offer period.
Metals X (ASX: MLX) will hold 22.5% of the new entity.
Westgold's recent success at Rover 1
In late March Westgold hit some more high grade gold copper at Rover 1 from an extension, which will help propel the Rover Field development, which is located near Tennant Creek.
The highlight was; 20 metres at 6.13 grams per tonne (g/t) gold and 3.26% copper from 935 metres, including 6 metres at 15.14g/t gold and 6.02% copper.
Boosting the potential of Rover, at the time Westgold said the true width of the system at depth appears to be 10 to 20 metres, with high grade mineralisation encountered 300 metres below the existing mine plan.
These results identify the potential for a much larger system beyond the one million gold ounce resource, as the latest discoveries lie beyond the existing resource.
Recent Scoping Studies demonstrate Rover 1 is an economically viable underground development scenario providing strong cashflows, with an estimated cash operating cost of below $600 an ounce gold equivalent.