Corazon Mining has completed its acquisition of the Chalice gold project from Westgold Resources, as it shifts from an earlier-stage explorer an emerging gold-focused developer in Western Australia.
The $25.7 million transaction sees Corazon acquire 100 per cent of the project, including its mining licence, contracts and technical information. The consideration comprises $8 million in upfront cash, $6.7 million in Corazon shares and up to $11 million in deferred cash payments linked to project milestones.
Upon completion, Westgold has become a 19.9 per cent shareholder in Corazon, retaining exposure to the project’s future success while completing its divestment of non-core assets under its portfolio optimisation strategy.
Located in Western Australia’s Higginsville district, the Chalice gold project hosts a JORC-compliant mineral resource of 191,000 ounces at 2.74 grams per tonne gold and has historically produced approximately 645,000 ounces.
Corazon plans to accelerate drilling and technical studies aimed at expanding the existing resource and advancing development opportunities.
Corazon Mining managing director Simon Coyle said this is the company’s third WA gold acquisition in under twelve months, cementing a deliberate strategy to build scale in the best gold addresses in the country.
“Chalice is a proven, high-grade system with a 191koz resource that remains open in multiple directions, and we believe the best discovery work is still ahead of us and we will waste no time moving straight into an aggressive resource growth drilling program,” he said.
“With gold trading well above the price assumptions underpinning our current resource estimate, there is a clear and immediate opportunity to grow ounces quickly. “
The acquisition was supported by a $16.5 million capital raising, with funds allocated toward the upfront acquisition payment, an accelerated drilling campaign at Chalice and continued exploration across Corazon’s broader Western Australian gold portfolio.
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