GWR to create gold-focussed subsidiary

GWR Group is set to demerge its Wiluna West gold project in Western Australia and assign the site to proposed subsidiary Western Gold Resources.

The company is hoping to spin-out its gold assets to take advantage of higher gold prices.

This would allow the company to focus on its Wiluna West iron ore project, which marked the company’s transition from explorer to miner.

GWR is seeking shareholder approval for the demerger and establishment of Western Gold Resources, which the company hopes to launch on the ASX.

According to GWR chairman Gary Lyons, the demerger is hoped to deliver more attention to the company’s gold assets through the subsidiary.

“With GWR’s Wiluna West Iron Ore now delivering revenue, we believe the time is right to take advantage of the buoyant gold price and spin-out our highly prospective gold assets,” he said.

“We believe the Wiluna West Gold assets will attract better investor attention and valuation in a standalone entity, while GWR can focus on the development of its remaining assets,” he said.

Wiluna West Gold contains a mineral resource estimate of 4.57 million tonnes at two grams per tonne of gold for 293,000 ounces.

“Given the quality of the Wiluna West gold project and the minimal work undertaken in recent years, we expect that Western Gold Resources Limited will attract the level of capital required to aggressively and systematically explore the (relatively under-explored) 22 kilometres of Joyners Find Greenstone Belt whilst also advancing the brownfields resource,” Lyons said.

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