Westgold Divests Mt Henry-Selene Gold Project for $64.6M

On December 16, 2025, Westgold Resources announced the divestment of its non-core Mt Henry-Selene Gold Project to Alicanto Minerals Limited for a total consideration of up to A$64.6 million. The deal consists of: - Cash: A$15 million, with A$1 million paid upon Alicanto's capital raising and A$14 million at transaction completion. - Shares: 357.1 million shares in Alicanto, valued at A$19.6 million (at an issue price of A$0.055 per share), resulting in Westgold holding a 19.9% stake. - Contingent Performance Rights: Up to A$30 million payable in cash or shares upon achieving specific drilling, resource, and development milestones over a 5-year term.

As part of the deal, Westgold gains the right to appoint a nominee to Alicanto's Board and will have equity participation rights in future capital raisings.

This news is materially positive and represents another decisive step in executing Westgold's publicly stated strategy of rationalizing its portfolio to focus on its larger, core operating assets. Coming just two days after the announcement to spin out other non-core assets into Valiant Gold, this divestment demonstrates management's commitment and swift execution.

From a financial perspective, the transaction immediately strengthens Westgold's already robust balance sheet. The A$15 million in upfront cash adds to the A$472 million in cash, bullion, and liquids reported at the end of the September 2025 quarter. This further de-risks the funding for its ambitious 3-year growth plan, which the company has stated is fully funded from its balance sheet and forecast cash flow.

Strategically, the deal is well-structured. It converts a non-producing asset on care and maintenance into immediate cash and a significant, liquid equity position in a focused explorer (Alicanto). This allows Westgold to retain upside exposure to the project's exploration potential without incurring the associated costs or management distraction. The contingent payments provide further potential value if the project advances successfully. This move allows management to dedicate its full attention and capital to ramping up production and reducing costs at its key hubs, namely the Murchison and Southern Goldfields operations, which are central to its plan to reach 470,000 ounces per annum by FY28.

Westgold Resources is a major Australian gold producer focused on its operations in the Murchison and Southern Goldfields regions of Western Australia. Following its 2024 merger with Karora Resources, it has become one of Australia's top five gold miners. The company's stated strategy is to streamline its portfolio by divesting non-core assets and focusing on its large, long-life, company-owned processing hubs and mines.

The company's flagship growth projects are the ramp-up of its major underground mines: Beta Hunt in the Southern Goldfields and Bluebird-South Junction in the Murchison region. These projects are central to its 3-year outlook, which aims to increase annual production from 326,000 ounces (FY25) to 470,000 ounces by FY28, while lowering All-In Sustaining Costs (AISC) to approximately A$2,500/oz. The recent recommencement of mining at the high-grade Great Fingall mine is another key component of this growth plan.