What's Happening?
Westgold Resources has agreed to sell its Mt Henry-Selene gold project in Western Australia to Alicanto Minerals for $64.6 million. The transaction includes $15 million in cash, a 19.9% equity stake in Alicanto valued
at $19.6 million, and up to $30 million in deferred consideration based on performance milestones. This divestment is part of Westgold's strategy to focus on larger, core assets following its merger with Karora Resources. The sale includes all associated tenements, licenses, and agreements. Westgold's CEO, Wayne Bramwell, expressed satisfaction with the deal, highlighting Alicanto's commitment to advancing the project through planned drilling investments.
Why It's Important?
The sale allows Westgold to streamline its portfolio and focus on its core operations, potentially increasing operational efficiency and profitability. For Alicanto, acquiring the Mt Henry-Selene project provides an opportunity to expand its resource base and leverage its expertise in gold exploration. The transaction also reflects broader trends in the mining industry, where companies are increasingly divesting non-core assets to concentrate on strategic priorities. This deal could enhance shareholder value for both companies, with Westgold benefiting from cash and equity, and Alicanto gaining a promising exploration project.
What's Next?
Completion of the transaction is subject to customary conditions, including Alicanto's capital raising and regulatory approvals. Alicanto plans to convene a shareholder meeting in January 2026 to finalize the deal. Westgold will continue discussions on the potential sale of other non-core assets, such as its Peak Hill and Chalice gold projects. The successful completion of this transaction could lead to further strategic realignments within the mining sector, as companies seek to optimize their asset portfolios.
