Southern Cross Goldfields and Polymetals have announced the long-speculated merger will go ahead, creating what both companies describe as a ‘significant diversified Australian gold company’.

The merged company will have a combined Mineral Resource inventory of 1.69 million ounces and an ‘outstanding’ exploration upside. The merger will be implemented as a “merger of equals” by way of a scheme of arrangement under which Southern Cross will offer 11 SXG shares for every 1 PLY share on issue.

The merger has been unanimously agreed to by the Polymetals Board, with no shareholder approval required on behalf of Southern Cross as the merger is structured as a Polymetals Scheme of Agreement.