Westgold Resources Limited (ASX: WGX) (TSX: WGX) announced the completion of the Chalice Gold Project (Chalice) divestment to Corazon Mining Limited (ASX: CZN) (Corazon). The transaction marks the end of Westgold's non-core asset sale program, which has delivered over $200 million in value to shareholders.
Transaction Details
Westgold received upfront consideration of $12.6 million, comprising an $8 million cash payment (including a $250,000 deposit previously received) and a 19.9% shareholding in Corazon valued at approximately $4.6 million. Additionally, Westgold will receive up to $11 million in deferred cash payments based on milestones:
- $4.0 million within 12 months of completion
- $3.5 million upon Corazon announcing a JORC (2012) compliant Mineral Resource Estimate at Chalice of at least 300,000 ounces gold Inferred or higher at a grade of not less than 0.5 g/t gold
- $3.5 million upon Corazon announcing a JORC (2012) compliant Mineral Resource Estimate at Chalice of at least 500,000 ounces gold Inferred or higher at a grade of not less than 0.5 g/t gold
Strategic Rationale
The divestment is part of Westgold's portfolio optimisation strategy launched in late 2025. The non-core asset sale program has now generated over $200 million in value for shareholders, with potential for further upside.
Westgold Managing Director and CEO Wayne Bramwell commented: “The divestment of Chalice to Corazon completes Westgold’s non-core asset sales process. It has streamlined our portfolio and enables a greater focus on our larger, core operating hubs. The Transaction delivered immediate value to Westgold shareholders via upfront cash and a strategic shareholding in a nimble Western Australian gold explorer. We retain future value upside on resource expansion and look forward to Corazon rapidly advancing the Chalice Gold Project.”
Advisers
Argonaut acted as financial adviser and Thomsons as legal adviser to Westgold in relation to the transaction.
