Most mine sales have a clear seller and a clear buyer. Westgold’s Peak Hill deal blurs that line.
The gold producer has completed the sale of its Peak Hill Gold Project to Great Boulder Resources, but the transaction leaves Westgold with cash in the bank, a major shareholding and a royalty over any future gold production.
Westgold receives $25 million in cash, a 19.9 per cent shareholding in Great Boulder valued at $29.4 million and a one per cent net smelter return (NSR) royalty over all future gold production from Peak Hill.
“The sale of Peak Hill is consistent with Westgold’s strategy to streamline our portfolio and focus on our larger, core operating hubs,” Westgold managing director and chief executive officer Wayne Bramwell said.
Cash, equity and royalties rarely feature in the same mine sale. Together, they allow Westgold to unlock immediate value while remaining invested in Peak Hill’s future.
“The sale to Great Boulder is transformational for them and the upfront cash payment and equity exposure delivers immediate value for Westgold shareholders,” he said.
“Our shareholders also retain exposure to the project’s upside potential through a 1.0% NSR royalty, whilst Great Boulder gains access to a processing solution through Westgold’s Murchison hubs.”
The transaction also establishes an ongoing partnership. Alongside the acquisition, Great Boulder gains access to Westgold’s Murchison processing hubs, providing a potential pathway to production as it advances Peak Hill.
“We look forward to the Great Boulder team rapidly advancing Peak Hill and a longer-term relationship across the broader Murchison region.”
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