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Westgold locks in $100 million of funding

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Westgold Resources has established a $100 million revolving corporate facility (RCF) under a secured syndicated facility agreement.

The gold company executed the new corporate facility with ING Australia and French financial services company Société Générale. The RCF is to be used for general corporate purposes and has a three-year term, ending in November 2026.

Under the facility, Westgold isn’t required to enter into mandatory gold hedging. This allows the Western Australian gold miner to retain full discretion over hedging decisions.

Westgold said it remains free of fixed forward hedges, which enables it to take advantage of gold sales at the spot price.

“Westgold is confident in the trajectory of our business and see the support of two Tier-1 international financiers, such as ING Bank and Société Générale as strong validation of the company’s growth plans,” Westgold managing director Wayne Bramwell said.

“With $217 million (in) cash and bullion at the end of Q1 FY24 (first quarter of the 2023–24 financial year), Westgold is fully funded to develop organic growth assets such as the Great Fingall mine at Cue.”

Westgold commenced decline development at its Great Fingall gold mine in late October, after the mine’s development was approved by the company board in August.

“With a strong balance sheet and growing cash flows from our operations, this new corporate facility provides an additional $100m in additional firepower to move quickly on opportunities we see emerging,” Bramwell said.

“Westgold has demonstrated both intent and discipline regarding growth and will maintain that discipline. Critically, the company remains debt free with the corporate facility fully available and currently undrawn.”

Great Fingall’s first ore is anticipated in the first half of 2025.

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