PERTH: Westgold Resources Limited (ASX: WGX) announced today that it has entered into an agreement to sell its non-core Lakewood Milling Operation to Black Cat Syndicate Limited (ASX: BC8) for a total consideration of $85 million. The transaction includes $70 million in cash and $15 million in BC8 scrip. Black Cat will also assume approximately $8 million in rehabilitation liabilities.
The sale is expected to be completed on or before March 31, 2025. Under the agreement, Westgold will retain optionality and priority access to up to 200,000 tonnes per annum of processing capacity at Lakewood through a two-year toll-treating arrangement.
Wayne Bramwell, Managing Director and CEO of Westgold, emphasized the strategic importance of this move, aligning with the company’s focus on larger mines feeding larger processing plants to achieve higher operational outputs and lower costs. He highlighted the ongoing expansion of the Beta Hunt mine and the Higginsville mill, with results from the Higginsville Expansion Study anticipated in March 2025.
“The divestment of Lakewood is a significant step in our strategy to streamline operations and focus on our core assets,” Bramwell said. “We look forward to working with Black Cat Syndicate and leveraging our toll-treating agreement to ensure continued access to processing capacity.”
Westgold’s decision to divest the Lakewood Milling Operation comes as part of its broader strategy to optimize its portfolio and concentrate on high-value projects.