Westgold to sell Mt Henry-Selene gold project in WA to Alicanto

Westgold Resources has signed a binding plus merchantability statement to merchantability the Mt Henry-Selene golden project, located adjacent Norseman successful Western Australia (WA), to Alicanto Minerals for full of A$64.6m.

The task contains a golden assets of 900,000oz distributed crossed respective deposits on a 16km agelong successful the Southern Kalgoorlie terrane.

The mineralisation remains unfastened on onslaught and down-dip of each deposit, offering important imaginable for accelerated assets enlargement and broader district-scale growth.

The Mt Henry task was past mined successful 2019, and its existent mineral resources are reported wrong pit shells, based connected a golden terms presumption of astir A$2,169/oz.

With the golden terms surpassing A$6,000/oz, determination is important imaginable to grow these pit shells.

According to the presumption of the agreement, Westgold volition person A$15m successful currency and astir 357.1 cardinal Alicanto shares valued astatine A$19.6m upon completion of the transaction.

An further deferred outgo of A$30m, payable successful currency oregon shares, is contingent upon the accomplishment of agreed show milestones, which volition beryllium issued arsenic show rights.

Westgold managing manager and CEO Wayne Bramwell said: “The divestment of Mt Henry to Alicanto follows the precocious announced spin-out of the company’s non-core Murchison projects to Valiant Gold. This transaction delivers Westgold shareholders an charismatic premix of cash, vulnerability to task upside via a ample strategical shareholding and deferred information payable connected circumstantial task milestones.

“Westgold is pleased to spouse with Alicanto, whose committee and absorption squad are experienced and committed explorers and person a demonstrable grounds of rapidly advancing golden projects. Alicanto’s planned drilling concern provides a pathway for exploration occurrence and imaginable aboriginal development, which tin unlock further worth for each stakeholders.”

Mt Henry was initially acquired arsenic a non-core plus done Westgold’s merger with Karora Resources and forms portion of Westgold’s extended 3,200km² tenement portfolio.

Bramwell added: “Westgold continues to advancement discussions successful narration to the imaginable merchantability of its Peak Hill and Chalice golden assets pursuing beardown inbound interest. The institution volition proceed to pass the marketplace of worldly developments successful accordance with its continuous disclosure obligations.”

Upon completion of the transaction, Westgold volition go a 19.9% shareholder successful Alicanto and person the close to nominate a typical to the Alicanto Board.

Argonaut served arsenic the fiscal advisor and Thomson Geer arsenic the ineligible advisor to Westgold for the transaction.