PERTH, Western
Australia, Feb. 25, 2025 /CNW/ - Westgold
Resources Limited (ASX: WGX) (TSX: WGX) – (Westgold or
the Company) is pleased to announce the divestment of the
non-core Lakewood Milling Operation to Black Cat Syndicate Limited
(ASX: BC8) for a total consideration of $85M consisting of $70M in cash (in staged payments) and $15M
in BC8 scrip (to be escrowed for 12 months).
BC8 will also assume approximately $8M in rehabilitation liabilities - please refer
to BC8's ASX announcement of 25 February
2025 for further information.
The transaction is expected to complete on or before
31 March 2025. As part of the
transaction, Westgold will also retain optionality and
priority access of up to 200ktpa of processing capacity at Lakewood
via a toll-treating agreement (for a period of two years), to be
entered into with BC8 at completion.
Westgold Managing Director and CEO Wayne Bramwell commented:
"Larger mines feeding larger processing plants is Westgold's
strategy to deliver higher operational outputs and operating
margins at lower cost.
In the Southern Goldfields, the equation that delivers these
metrics is an expanded Beta Hunt mine feeding an expanded
Higginsville mill. Westgold's expansion of Beta Hunt is underway
with our investment in upgrading critical mine infrastructure to
deliver consistent outputs above 2Mtpa run rates this calendar
year.
At Higginsville, an expansion study that evaluates a range of
milling options from 2.6Mtpa to 4.0Mtpa is nearing completion. A
larger and materially lower operating cost platform, underpinned by
expanded Beta Hunt mine production also brings other regional
underground and open pit targets into focus.
The divestment of non-core assets such as Lakewood, realises
some of the inherent value from second tier assets in our
portfolio. It consolidates our processing capacity in a single
location and provides expansion capital for a much larger
processing hub at Higginsville.
The results from the Higginsville Expansion Study will be
reported during March 2025."
This announcement is authorised for release to the ASX by the
Board.
SOURCE Westgold Resources Limited