Westgold Resources (ASX:WGX) has completed the divestment of its non-core Lakewood Milling Operation in Western Australia to Black Cat Syndicate (ASX:BC8).
As part of the sale,the $2.75 billion market capitalisation company will receive $85 million comprising $70 million in cash and $15 million of Black Cat shares at $0.76 per share.
To date, Westgold has received $25 million in cash, with an additional $20 million payment due by 30 June 2025.
Black Cat, which has a market capitalisation of $629.55 million, will pay the final cash payment of $25 million on 30 November 2025.
Westgold CEO Wayne Bramwell says the company’s corporate strategy is to leverage its portfolio and focus on the larger, lower cost mines and mills.
“The divestment of Lakewood is consistent with this plan, reduces our cost base and simplifies our Southern Goldfields business,” the CEO says.
“All Beta Hunt ore will now be directed to and processed at our Higginsville Operation. This allows us to prioritise higher grade ore through this mill and realise the lower operating costs of this larger 1.6 million tonnes per year mill.
“A study on the option to expand this Higginsville Mill is nearing completion, with results to be reported in April.”
Meanwhile, Black Cat is starting processing of its open pit and underground ore at Lakewood, which has a current throughput of 1.2 million tonnes per year, immediately.
The Lakewood processing facility is now part of Black Cat’s broader Kal East Gold Operation in Western Australia. Kal East, comprising 650km2, contains a resource of 18.8 million tonnes @ 2.1 grams per tonne gold for 1.924 million ounces.
Westgold Resources is a gold producer with assets in the Murchison and Southern Goldfields regions of Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Black Cat Syndicate
