Westgold Resources completes Peak Hill divestment for $54.4M

• Westgold Resources completed the divestment of its Peak Hill Gold Project to Great Boulder Resources.
• The transaction delivers an immediate combination of cash, equity, and future royalty streams to the company.
• The asset sale aligns with a broader corporate strategy to simplify the portfolio and focus on core operating hubs.

Westgold Resources (ASX:WGX) has finalised the divestment of its Peak Hill Gold Project to Great Boulder Resources (ASX:GBR) for a total consideration of $54.4 million.

The transaction alters the regional landscape by shifting full operational control to Great Boulder Resources while reducing the seller's non-core asset commitments.

“The sale of Peak Hill is consistent with Westgold’s strategy to streamline our portfolio and focus on our larger, core operating hubs,” said Westgold Resources Managing Director and CEO Wayne Bramwell.

The consideration comprises a $25 million cash component and a 1% net smelter return royalty over all future gold production from the project.

Following the announcement, the Westgold Resources share price was down at $4.70.

The company stated that the transaction is expected to bring forward value for its shareholders from non-core, non-producing assets.

Argonaut acted as financial adviser, and Thomsons acted as legal adviser to manage the corporate transaction.