Bendigo Mining and BCD Resources have continued the consolidation in Australia’s gold mining industry by agreeing to merge to create a rare mid-cap gold miner.

The merger, to be completed by way of a scheme of arrangement, will see BCD shareholders receive 0.72 of a Bendigo for each BCD share held. The offer values BCD at 14.4¢ a share, a 44 per cent premium to its last closing price of 10¢. The combined group will have a market capitalisation of about $162 million.