Westgold Resources is set to breathe new life into its smaller gold assets, announcing the demerger of its Reedy and Comet projects into a new standalone ASX-listed company, Valiant Gold.
The move is designed to unlock value, fast-track cash flow and allow Westgold to focus on its core, higher-grade operations. The Reedy and Comet projects include four historic underground mines with recent production, boasting a combined mineral resource of 15.6 million tonnes at 2.4 g/t gold, at 1.2 million ounces of gold.
Beyond near-term production, the assets offer significant exploration upside and multiple opportunities for early-stage mine restarts.
Valiant plans a concurrent IPO to raise $65–$75 million, with eligible Westgold shareholders able to participate in a $20 million priority offer. After the IPO, Westgold will retain a meaningful equity stake of 44–48 per cent, keeping exposure to any upside from exploration or production growth.
“Westgold is focused on expansion of our larger, core operating assets. By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages,” Westgold managing director and chief executive officer Wayne Bramwell said.
“Valiant will have a fast-track to cashflow with an ore purchase agreement (OPA) to be entered into with Westgold. This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold.”
Under the OPA, Valiant will process ore at Westgold’s Cue and Meekatharra hubs, providing a low-capital, rapid pathway to gold production while also supplying Westgold with additional ore outside its three-year plan.
Valiant’s board will be led by non-executive chair Derek La Ferla, with Brendan Tritton as managing director, Anthony Chamberlain as non-executive director and Westgold’s Simon Rigby joining as non-executive director.
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