PERTH (miningweekly.com) – Gold miner Doray Minerals and fellow-listed Westgold Resources have tanked an agreement over the Andy Well and Gnaweeda gold projects.
The two companies in December of last year struck a deal under which Westgold would acquire the Andy Well and Gnaweeda gold projects for up to A$15-million in cash and shares.
However, the two companies on Friday announced that certain conditions of the term sheet could not be met or waived by the agreed-upon date.
Doray told shareholders that the termination of the agreement with Westgold would not affect its merger with ASX-listed Silver Lake Resources, with the Doray board continuing to unanimously recommend that shareholders vote in favour of the merger.
Doray noted that options for the Andy Well and Gnaweeda projects would be re-evaluated following the implementation of the merger, with a view to delivering an outcome that would be in the best interests of shareholders.