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The $2.3 billion listed gold miner Ramelius Resources has approached $1 billion Westgold Resources to discuss a merger proposal, in a deal that could be the sector’s biggest amid a wave of consolidation.

Street Talk can reveal Ramelius boss Mark Zeptner initiated the M&A talks in recent months but was turned away by Westgold’s Wayne Bramwell. Sources said the proposal included at least some scrip, with gold companies showing a penchant for “merger of equals”.

Westgold did not disclose the approach to its shareholders, suggesting it was unwilling to progress as it chased an M&A target of its own in Karora Resources. Westgold was advised by Argonaut, while Ramelius has historically used Azure Capital.

To recap, the two gold miners locked horns this year over Toronto-listed Karora Resources. The stoush ended when Ramelius decided to walk away, while Westgold progressed and is set to put a circa $1 billion takeover proposal to a shareholder vote in July.

The revelation of Ramelius’ M&A approach for Westgold should throw a spanner in the works for the Karora acquisition, and possibly all three companies’ share prices.

While neither of the ASX-listed companies disclosed the deal discussions, Wednesday morning’s Takeovers Panel application from Ramelius all but confirmed Street Talk’s assumptions.

Read the full story tomorrow and more on the Street Talk page.

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