Westgold Sells Mt Henry-Selene Gold Project to Alicanto Minerals

Westgold Divests Mt Henry-Selene Gold Project in WA

Westgold Resources has signed a binding agreement to sell the Mt Henry-Selene gold project near Norseman, Western Australia, to Alicanto Minerals for A$64.6 million. The project contains approximately 900,000oz of gold across multiple deposits along a 16km stretch in the Southern Kalgoorlie terrane.

The mineralization remains open along strike and down-dip, offering strong potential for rapid resource expansion. Mt Henry was last mined in 2019, and current resources are reported within pit shells based on a gold price of A$2,169/oz. With gold prices now above A$6,000/oz, significant expansion potential exists.

Westgold will receive A$15 million in cash and roughly 357.1 million Alicanto shares valued at A$19.6 million. An additional deferred payment of A$30 million, in cash or shares, depends on achieving performance milestones issued as performance rights.

Strategic Benefits and Future Plans

Westgold CEO Wayne Bramwell highlighted the transaction’s benefits for shareholders. The deal provides cash, exposure to project upside, and deferred consideration based on specific milestones. Bramwell praised Alicanto’s experienced board and management team for advancing gold projects efficiently.

The sale strengthens Alicanto’s exploration footprint while allowing Westgold to retain a 19.9% stake and nominate a board representative. Mt Henry was acquired as a non-core asset through Westgold’s merger with Karora Resources and complements its 3,200km² tenement portfolio.

Meanwhile, Westgold continues discussions regarding potential sales of Peak Hill and Chalice gold assets. Earlier this month, Westgold restarted high-grade mining at the Great Fingall mine near Cue, WA, marking first production from this historic reef in over 100 years.

SuperMetalPrice Commentary:

The divestment of Mt Henry-Selene illustrates Westgold’s strategic shift to focus on core assets while maintaining exposure to growth projects via Alicanto. Investors gain from both immediate cash inflow and potential exploration upside. The transaction also signals strong confidence in Western Australia’s gold exploration sector and could accelerate resource development in the Southern Kalgoorlie terrane.