Western Gold Resources (ASX:WGR) sells Swedish assets for CAD$180,000

Western Gold Resources announced the sale of four Swedish property assets totalling approximately 32,230 hectares to 1354195 B.C. Ltd., a Canadian company.

The transaction will see Western Gold receive CAD$180,000 ($196.447) in cash and retain a 2% net smelter return royalty on the properties.

The divestment is part of Western Gold's strategic move to streamline its portfolio and focus resources on its Australian projects.

Despite the sale, Western Gold maintains exposure to the potential future upside through its net smelter return royalty and eleven other Swedish property assets.

Gary Lyons, Chairman of Western Gold Resources, said, "This transaction aligns with our strategy to focus on core assets while still benefiting from our Swedish interests."

Completion of the transaction is anticipated in the short term, pending customary closing conditions including regulatory approvals.

Both companies will apply for the necessary consents from the Mining Inspectorate in Sweden.

The agreement allows the purchaser to buy back halves of the net smelter return royalty for CAD$2 million ($2.2 million) and CAD$5 million ($5.5 million), respectively.

The properties involved in the sale include Risnäs nr 100, Kopparberget nr 100, Skorped nr 100, and Hinnsjön nr 100.

Western Gold Resources is a gold exploration company. The company is the owner of the Gold Duke Project, a prospective brownfield gold project located west of Wiluna in Western Australia’s mid-west.

The Wiluna West Gold Project is located approximately 35km to 45km southwest of the township of Wiluna and 750km northeast of Perth in the Northern Goldfields region of Western Australia.

At the time of reporting, Western Gold Resources’ share price was $0.035.