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| Westgold Mt Henry Selene gold project |
The Westgold Mt Henry-Selene gold project sale marks a strategic divestment in Western Australia’s evolving gold market.
Westgold Resources agreed to sell the Mt Henry-Selene asset near Norseman, WA, to Alicanto Minerals for A$64.6m.
As a result, Westgold strengthens balance sheet flexibility while retaining upside exposure through equity participation.
Asset Valuation and Resource Upside at Mt Henry-Selene
The Westgold Mt Henry-Selene gold project sale transfers a resource hosting approximately 900,000oz of gold.
These ounces extend across multiple deposits along a 16km corridor in the Southern Kalgoorlie terrane.
However, mineralisation remains open along strike and down-dip, supporting rapid resource growth potential.
The project’s mineral resources sit within pit shells using a gold price assumption near A$2,169/oz.
Meanwhile, spot gold prices above A$6,000/oz materially expand potential pit shells and mine economics.
Consequently, Alicanto gains leverage to drilling-led expansion and district-scale development.
Transaction Structure and Strategic Implications
The Westgold Mt Henry-Selene gold project sale includes A$15m cash and 357.1m Alicanto shares worth A$19.6m.
In addition, a deferred A$30m consideration depends on performance milestones, payable in cash or shares.
Therefore, Westgold secures immediate liquidity and milestone-linked upside.
Upon completion, Westgold will hold a 19.9% stake in Alicanto and nominate a board representative.
In contrast, Alicanto gains a brownfield gold project last mined in 2019 with near-term drilling optionality.
Meanwhile, Westgold continues divesting non-core assets following the Murchison spin-out to Valiant Gold.
The asset originated from Westgold’s merger with Karora Resources and sat within a 3,200km² tenement portfolio.
Furthermore, Westgold confirmed ongoing discussions to sell Peak Hill and Chalice gold assets amid strong interest.
Recently, the company also restarted high-grade production at the historic Great Fingall mine near Cue, WA.
ScrapInsight Commentary
This transaction highlights disciplined capital recycling amid record Australian gold prices.
Deferred consideration links valuation to exploration success, aligning incentives in a volatile commodities cycle.
From a circular capital allocation perspective, the deal supports efficient asset turnover and market liquidity.
