Aragon recommends Westgold takeover

Takeover target Aragon Resources Ltd has advised its shareholders to accept an all-scrip bid by fellow junior gold explorer Westgold Resources Ltd.
Westgold, which is the target's second largest shareholder with a 20.1 per cent stake, has offered one of its shares for each Aragon share held plus one Westgold option for every Aragon option held.
Aragon shares closed up half a cent at 27 cents on Monday, while shares in Westgold inched one cent lower to 28 cents, valuing the target at about $65 million, compared to its current market capitalisation of around $61 million.
Aragon said its board had decided to recommend the offer because it was at a substantial premium to the target's pre-bid price and had been deemed fair and reasonable by an independent expert.
"Aragon securityholders will become part of a mid-tier gold company with an attractive balance of development assets from a large resource base and a number of highly prospective exploration projects, with added exposure to copper and other base metals," Aragon said.