GWR sells Wiluna West for $30 million

GWR Group (ASX:GWR) has entered into a legally binding agreement to sell its remaining interest in the Wiluna West Iron Ore Project in Western Australia to privately held Gold Valley West Wiluna. 

Under the agreement, GWR, which has a market capitalisation of $26.66 million, will receive $30 million in cash from Gold Valley. 

Gold Valley will pay a $3 million non-refundable deposit, payable within 7 days of executing the agreement, and will issue GWR a royalty in respect of all iron ore won from the project and exported or otherwise sold on or after 1 December 2023 at the rate of $2 per dry metric tonne. 

Following the completion of the transaction, GWR will continue to hold its interest in the Prospect Ridge Project and Hatches Creek Project and plans to continue to develop existing assets and conduct other strategic initiatives in due course. 

GWR Chairman Gary Lyons says the Wiluna West divestment was a ‘difficult’ decision for the company. 

“The compelling offer submitted by Gold Valley West Wiluna represents a significant opportunity for the company to further bolster its cash position. 

This will provide the catalyst to develop our existing assets and pursue other commercial ventures.”

“The compelling offer submitted by Gold Valley West Wiluna represents a significant opportunity for the company to further bolster its cash position”

Gold Valley is a private explorer, developer, and operator of primary iron ore assets with a current focus on developing its ‘large’ portfolio of exploration and near-production assets in the Northern Territory and Western Australia. 

GWR is an independent Australian iron ore producer focused on exploring and developing ‘high-quality’ mineral projects. 

As of 30 September 2023, the company had $10.26 million cash at hand, according to its latest quarterly report.

Write to Aaliyah Rogan at Mining.com.au   

Images: GWR Group
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.