Westgold Resources Announces Sale of South Kalgoorlie Operations

In a strategy to focus its efforts on its larger long-life Murchison gold assets, the Board of Westgold Resources Limited (ASX:WGX) (Westgold) advises it has agreed to sell its South Kalgoorlie Operations (SKO) to Northern Star Resources Limited (Northern Star).

SKO operates Jubilee Processing Plant as its mining hub. In recent years the HBJ Underground Mine has operated as the core feed with additional smaller open pit and low grade stockpile sources providing approximately 60% of plant capacity. The remainder of plant capacity has been filled by toll processing third party ores from the region.

Westgold has agreed to sell its wholly owned subsidiaries that collectively make up the SKO; Dioro Exploration Pty Ltd, HBJ Minerals Pty Ltd and Hampton Gold Mining Areas Ltd. The consideration for the sale is $80 million (with working capital adjustments). The purchase consideration is made up of $20 million in cash and $60 million in unrestricted fully paid ordinary shares in Northern Star calculated at a backward-looking 10-day VWAP.

Westgold will retain its lithium royalties over the Mt Marion Lithium Mine and the rights to lithium exploration and mining over Location 53 and 59.


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