PERTH, Western Australia, April 1, 2025 – Westgold Resources Limited (ASX | TSX: WGX – Westgold or the Company) is pleased to announce the successful completion of the sale of its Lakewood Milling Operation, a non-core asset, to Black Cat Syndicate Limited (ASX: BC8). The total consideration for the sale is $85M (refer ASX: 25 February 2025), which includes $70M in cash and $15M in Black Cat Syndicate shares, priced at $0.76 each.
As of 31 March 2025, Westgold has received $25M in cash. An additional payment of $20M is due by 30 June 2025, with the remaining $25M to be paid on 30 November 2025.
Westgold retains the right to process up to 200ktpa of ore at the Lakewood facility under a priority toll-treating agreement for two years.
Westgold Managing Director and CEO Wayne Bramwell stated:
“Westgold operates as an unhedged gold producer, managing six mines and four operational mills across two of Western Australia’s most prolific gold regions.
Our corporate strategy involves leveraging our asset portfolio and concentrating on our larger, more cost-effective mines and mills to generate shareholder value. The Lakewood divestment aligns with this strategy, reducing our cost structure and simplifying our Southern Goldfields operations.
All ore from Beta Hunt will now be processed at our Higginsville facility. This will allow us to prioritize the processing of higher-grade ore through this mill, taking advantage of the lower operating costs associated with this larger 1.6Mtpa mill.
A study examining the potential expansion of the Higginsville Mill is nearing completion, with the results scheduled for release in April.”
The Board has authorised this announcement for release to the ASX.
SOURCE Westgold Resources Limited
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