What's Happening?
Westgold Resources has finalized the sale of its Mt Henry Gold Project in Western Australia to Alicanto Minerals, increasing the total consideration from A$64.6 million to A$110 million. This increase reflects the appreciation in value of Westgold's 19.9% stake in Alicanto since the initial announcement in December 2025. The sale is part of Westgold's strategy to streamline its portfolio by divesting non-core and non-operational assets. Alicanto plans to commence a 50,000-meter drilling program aimed at expanding the 915,000-ounce resource along a 16-kilometer corridor. The transaction received necessary approvals, including ministerial consent and support from the Ngadju Native Title Aboriginal Corporation.
Why It's Important?
The completion of this sale marks
a significant milestone for both Westgold and Alicanto. For Westgold, the divestment aligns with its strategy to enhance shareholder value by focusing on core assets. Alicanto, on the other hand, gains a substantial opportunity to apply its expertise in brownfields exploration and project advancement. The planned drilling program could unlock further value from the Mt Henry site, potentially increasing the resource base and enhancing Alicanto's market position. This transaction also highlights the ongoing consolidation and strategic realignment within the mining sector.
What's Next?
Alicanto's upcoming drilling program is expected to provide insights into the potential expansion of the Mt Henry resource. As a significant shareholder, Westgold stands to benefit from any exploration success. Additionally, Westgold is advancing the divestment of its Peak Hill and Chalice gold assets and plans an initial public offering for Valiant Gold, targeting a listing in late March 2026. These moves are part of Westgold's broader effort to rationalize its portfolio and focus on high-value projects.
