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An announcement from Great Boulder Resources Ltd ( (AU:GBR) ) is now available.
Great Boulder Resources has struck a binding deal to acquire 100% of Westgold Resources’ Peak Hill Gold Project in Western Australia, an historic high-grade district with more than 900,000 ounces of past production and a current JORC 2012 resource of 9.4 million tonnes at 1.6 grams per tonne for 481,000 ounces of gold. The package includes seven granted mining leases and an exploration licence located close to Westgold’s three mills and roughly 100 kilometres from Great Boulder’s existing Side Well Gold Project.
Under the transaction, Great Boulder will pay $25 million in cash, issue shares giving Westgold a 19.9% equity stake, and grant a 1% net smelter return royalty over Peak Hill, while Westgold gains the right to nominate a director to the Great Boulder board. The parties have also signed an Ore Purchase Agreement for toll treatment at Westgold’s mills and a non-binding strategic collaboration aimed at potentially fast-tracking both Peak Hill and the 1Moz Side Well project into capital-light production.
To fund the deal and an expanded work program, Great Boulder is raising $40 million via a two‑tranche placement at A$0.085 per share, leaving it with an expected pro‑forma net cash balance of $25 million. The company plans a combined 60,000‑metre multi‑rig drilling campaign across Peak Hill and Side Well over the next six months, targeting a resource upgrade at Peak Hill within that timeframe and preparing Peak Hill for near-term mining under the ore processing arrangement.
The acquisition materially lifts Great Boulder’s gold inventory and deepens its strategic alignment with established producer Westgold, which has signalled confidence in the projects by becoming the largest shareholder. With the appointment of experienced mining executive Chris Tuckwell as chair and access to nearby milling capacity, Great Boulder is moving from pure explorer towards a potential low-capex production profile, an evolution that could re-rate the company’s position in the Murchison goldfield and provide a clearer pathway to cash flow for investors.
More about Great Boulder Resources Ltd
Great Boulder Resources Limited is an Australian gold exploration and development company focused on Western Australia’s Murchison region. Its primary assets include the Side Well Gold Project near Meekatharra, and it is now adding the nearby historic Peak Hill Gold Project, positioning the company as an emerging gold producer with access to existing regional processing infrastructure.
Average Trading Volume: 5,587,453
Technical Sentiment Signal: Hold
Current Market Cap: A$96.73M
See more insights into GBR stock on TipRanks’ Stock Analysis page.