The boards of St Barbara Limited and Allied Gold have announced the creation of an international diversified gold producer following a successful merger. According to a joint statement, the merged company has a forecasted gold production of approximately 435,000 ounces in the 2012-13 financial year.

 

The boards of the company have said the combination of the assets of the two companies has a self-evident financial and strategic rationale and that the merger is clearly value enhancing.

 

The respective boards backed the merger on the grounds that the two company’s share complementary business, development and funding profiles as well as an anticipated strong asset growth.

 

Commenting on the merger, St Barbara’s Managing Director and CEO Tim Lehany outlined the projected growth of the merged company.

 

“The strategic and financial logic of the combination is clear, driven by the complementary nature of the two companies and the strong organic growth profile of the combined business.    It will deliver a diversified asset portfolio spanning exploration to gold production,” Mr Lehany said.