Westgold Resources Limited has successfully completed the divestment of its non-core Lakewood milling operation in Western Australia to Black Cat Syndicate Limited for $85 million in cash and shares.
Under the deal’s terms, Westgold will retain priority access to process up to 200ktpa of ore at Lakewood via a toll-treating agreement for a period of two years.
Details on a target closing date were not disclosed.
“Westgold is an unhedged gold producer with six mines and now four mills operational across two of Western Australia’s most abundant goldfields,” Westgold Managing Director and CEO Wayne Bramwell said.
“Our corporate strategy is to leverage our portfolio and focus on our larger, lower-cost mines and mills to unlock value for our shareholders. The divestment of Lakewood is consistent with this plan, reduces our cost base and simplifies our Southern Goldfields business.”
All ore from Beta Hunt will now be directed to and processed at the company’s Higginsville operation, it said, which will allow it to prioritize higher-grade ore through this mill – and realize the lower operating costs of the larger 1.6Mtpa mill.
A study on the option to expand the Higginsville Mill is nearing completion, with results to be reported this month.
Source: Westgold Resources