April 8 (Reuters) - Westgold Resources Ltd ( WGXRF ):

* MERGER TO CREATE 400 KOZPA AUSTRALIAN GOLD MINER

* WESTGOLD RESOURCES AND KARORA RESOURCES AGREED TO COMBINE

IN A

MERGER

* KARORA SHAREHOLDERS WILL RECEIVE 2.524 WESTGOLD SHARES,

A$0.68

IN CASH AND 0.30 OF A SHARE IN A NEW COMPANY TO BE DE-MERGED

* UPON COMPLETION OF TRANSACTION, CO'S SHAREHOLDERS WILL OWN

50.1%

OF COMBINED CO

* OFFER CONSIDERATION REPRESENTS A$6.60 PER KARORA SHARE

* TRANSACTION HAS BEEN UNANIMOUSLY APPROVED BY BOARDS OF

DIRECTORS

OF WESTGOLD AND KARORA

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