Westgold Sells Peak Hill Gold Project for $58.3m Plus Royalty in Portfolio Shift

Westgold Resources ( (AU:WGX) ) has shared an update.

Westgold Resources has agreed to sell its non-core Peak Hill Gold Project in Western Australia to Great Boulder Resources for $58.3 million in cash and scrip, plus a 1.0% net smelter return royalty on all future production. The consideration includes $25 million in cash, $33.3 million in Great Boulder shares equating to a 19.9% stake, and a mining-mortgage secured royalty, giving Westgold ongoing exposure to Peak Hill’s future output.

As part of the transaction, Westgold and Great Boulder have signed an ore purchase agreement that may see Peak Hill ore processed through Westgold’s Murchison hubs, and a strategic collaboration to examine options to fast-track Great Boulder’s Side Well Gold Project. The deal continues Westgold’s portfolio optimisation drive, lifting realised shareholder value from recent divestments to about $208 million this financial year, while sharpening its focus on larger core assets and preserving upside through royalties and equity holdings.

The most recent analyst rating on (AU:WGX) stock is a Buy with a A$8.45 price target. To see the full list of analyst forecasts on Westgold Resources stock, see the AU:WGX Stock Forecast page.

More about Westgold Resources

Westgold Resources is an Australian gold producer listed on the ASX and TSX, operating multiple mines and processing hubs in Western Australia. The company focuses on optimising its portfolio by concentrating capital and management attention on larger, core operating mines while divesting non-core projects and retaining financial exposure through royalties and equity stakes.

YTD Price Performance: -16.77%

Average Trading Volume: 5,212,126

Technical Sentiment Signal: Buy

Current Market Cap: A$5.06B

For a thorough assessment of WGX stock, go to TipRanks’ Stock Analysis page.