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

Core Viewpoint - Westgold Resources has entered into a binding asset sale agreement to sell the Mt Henry-Selene gold project to Alicanto Minerals for A$64.6 million, highlighting the potential for resource expansion and strategic partnerships in the gold sector [1][4]. Group 1: Transaction Details - The Mt Henry project, located near Norseman in Western Australia, contains a gold resource of 900,000 ounces across several deposits along a 16km stretch [1]. - The sale agreement includes an upfront payment of A$15 million in cash and approximately 357.1 million shares of Alicanto valued at A$19.6 million upon completion [2]. - An additional deferred payment of A$30 million is contingent upon achieving specific performance milestones, which will be issued as performance rights [3]. Group 2: Strategic Implications - The divestment aligns with Westgold's strategy to streamline its portfolio, following the spin-out of non-core Murchison projects to Valiant Gold [4]. - Westgold will hold a 19.9% stake in Alicanto and has the right to nominate a representative to the Alicanto Board, indicating a continued interest in the project's success [6]. - The partnership with Alicanto is seen as beneficial due to their experienced management team and planned drilling investments, which could enhance exploration success and unlock additional value [5]. Group 3: Market Context - The Mt Henry project was last mined in 2019, with current resources based on a gold price assumption of A$2,169 per ounce, while the current gold price exceeds A$6,000 per ounce, suggesting significant potential for resource expansion [2]. - Westgold is also exploring the potential sale of its Peak Hill and Chalice gold assets, indicating ongoing strategic realignment and market interest [6]. Group 4: Advisory Support - Argonaut acted as the financial adviser and Thomson Geer served as the legal adviser to Westgold for this transaction, ensuring professional guidance throughout the process [7].