Westgold Resources (ASX:WGX) has completed the sale of its Peak Hill Gold Project to Great Boulder Resources (ASX:GBR) for $54.4 million.
The consideration comprises a $25 million cash payment, including a $1 million deposit already received and a 19.9% shareholding in Great Boulder valued at $29.4 million.
Westgold will also receive a 1.0% net smelter return (NSR) royalty over all future gold production from Peak Hill.
The company says the transaction aligns with its strategy to simplify its portfolio and extract value from non-core assets.
CEO Wayne Bramwell says Westgold will now be focusing on larger, core operating hubs.
“The sale to Great Boulder is transformational for [our core operating hubs] and the upfront cash payment and equity exposure delivers immediate value for Westgold shareholders,” Bramwell says.
“Our shareholders also retain exposure to the project’s upside potential through a 1.0% NSR royalty, whilst Great Boulder gains access to a processing solution through Westgold’s Murchison hubs,” Bramwell says.
Argonaut acted as financial adviser and Thomsons provided legal advice to Westgold for this transaction.
Westgold Resources is a gold producer and explorer operating multiple processing facilities across Western Australia’s Murchison and Southern Goldfields regions.
Write to Paula Fabe at Mining.com.au
Images: Westgold Resources
