Westgold to Spin-Out Non-Core Assets to Valiant
Executive Summary
- Westgold Resources will de‑merge its non‑core Reedy’s and Comet gold assets into a new ASX‑listed company, Valiant Gold Ltd.
- Valiant intends to raise $65 million–$75 million in an IPO at $0.25 per share, with Westgold shareholders eligible for a $20 million priority allocation.
- Post‑IPO, Westgold will retain ~48% (minimum) to ~44% (maximum) of Valiant’s equity and will provide a up‑to‑$3 million interest‑free loan to fund early work on the demerged assets.
Key Details
- Transaction Structure:
- Asset transfer of Reedy’s and Comet projects (combined Mineral Resources: 15.6 Mt @ 2.4 g/t Au = 1.2 Moz) from Westgold to Valiant.
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Concurrent IPO of fully paid ordinary shares in Valiant.
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IPO Terms:
- Issue price: $0.25 per Valiant share.
- Gross proceeds target: $65 M (minimum) – $75 M (maximum) before costs.
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Share allocation:
- Priority Offer to eligible Westgold shareholders: up to $20 M.
- Other institutional/broker offer: $45 M–$55 M.
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Equity Ownership Post‑IPO:
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Westgold will hold ~48% of Valiant at the minimum subscription level and ~44% at the maximum.
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Funding & Use of Proceeds:
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Valiant to use IPO proceeds for: drilling, studies, mine restart activities on Reedy’s and Comet assets; repayment of up‑to‑$3 M loan from Westgold.
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Ore Purchase Agreement (OPA):
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Upon demerger completion, Westgold and Valiant will enter an OPA to process ore from the Demerger Assets at Cue and/or Meekatharra processing hubs, providing near‑term cash flow for Valiant.
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Board & Management of Valiant:
- Derek La Ferla – Non‑Executive Chairman.
- Brendan Tritton – Managing Director.
- Anthony Chamberlain – Non‑Executive Director.
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Simon Rigby (Westgold Chief Growth Officer) – Westgold nominee on Valiant board.
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Capital Structure (Indicative):
| Minimum ($65 M) | Maximum ($75 M) | |
|---|---|---|
| Current Valiant shares issued | 100 M | 100 M |
| Shares to Westgold (consideration) | 240 M | 240 M |
| Shares under Other Offer | 180 M | 220 M |
| Shares under Priority Offer | 80 M | 80 M |
| Total shares on ASX listing | 500.0 M | 540.1 M |
| Options issued to advisers | 2 M | 2 M |
| Cash position (pre‑costs) | $65 M | $75 M |
| Market capitalisation (post‑IPO) | $125 M | $135 M |
| Enterprise value | $60 M | $60 M |
| Implied EV per resource ounce | $43/oz | $43/oz |
- Timeline:
- IPO prospectus filing: Mid‑Feb 2026.
- Priority offer record date: Late Feb 2026.
- IPO open & close: March 2026 (allocation late March).
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Expected demerger completion: Late March 2026, subject to ASX approval and minimum subscription.
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Loan Facility: Westgold will provide an unsecured, interest‑free loan of up to $3 M to Valiant, repayable after IPO close.
Notable Quotes
“By establishing Valiant, we create an independent, well‑funded gold company that can bring forward value from smaller assets… and unlock the exploration potential across the Reedy and Comet packages.” – Wayne Bramwell, Managing Director & CEO, Westgold
“Valiant is poised to unlock significant value from our portfolio of historically productive gold assets and has a clear pathway to cashflow and growth.” – Derek La Ferla, Non‑Executive Chairman, Valiant
Materiality: Material – Positive (significant corporate restructuring with capital raising and creation of a new listed entity).