The Globe and Mail reports in its Thursday, April 11, edition that according to Eight Capital analyst Puneet Singh, the proposed merger between Karora Resources and Westgold Resources would create a larger company that can attract more investors and benefit from Australian financing. The Globe's David Leeder writes that this would result in a better valuation for the company, which would not be possible if it only listed on the TSX. Mr. Singh says in a note: "Essentially, this is a larger vehicle, with more production per annum with all the assets in Western Australia. Post-combination, this will be a top-five ASX-listed gold producer. In Canada, we compare/contrast with New Gold. New Gold is a $1.6-billion market cap gold producer with a Canadian asset base that trades at 1.1 times P/NAV. At the time of the announcement, Westgold was trading at 0.9 times and Karora Resources was trading at 0.8 times. In our view, the combined entity will likely fetch a similar premium to NAV and that premium will grow as funds flow starts to come into the gold trade in earnest." Mr. Singh cut Karora to "neutral" from "buy." He shaved his share target back by $1.10 to $5.90. Analysts on average target the shares at $6.32.