Westgold Resources Unveils Plan To Spin Off Valiant Gold Boosts Core Operations Focus

Westgold Resources has announced plans to demerge its non-core Reedy and Comet gold projects into a new Australian Securities Exchange (ASX)-listed company, Valiant Gold. The transaction, contingent upon ASX approval, is expected to be completed by late March 2026.

The Reedy and Comet projects have a combined mineral resource of 15.6 million tonnes at 2.4 grams per tonne gold for 1.2 million ounces, an attractive prospect for potential investors. The two projects comprise four historic underground mines with recent production, making them an exciting opportunity for exploration and mining companies.

The demerger plan will allow Westgold to focus on its core operations in the Murchison and Southern Goldfields regions, where it has a significant presence through its Cue and Meekatharra processing hubs. By separating the Reedy and Comet projects into Valiant Gold, Westgold can concentrate on expanding its larger assets and delivering value to shareholders.

According to Wayne Bramwell, Managing Director and CEO of Westgold Resources, the demerger is an important step in the company’s strategy to expand its core operations. “We are focused on expansion of our larger, core operating assets,” he said. “By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages.”

Bramwell highlighted the benefits of the demerger plan, including a fast-track to cash flow with an ore purchase agreement (OPA) that will enable ore from the demerged assets to be processed at Westgold’s Cue and/or Meekatharra processing hubs. This collaborative model has proven successful in the past, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG).

As part of the demerger plan, Valiant will raise between A$65 million ($43.22 million) and A$75 million before costs, including a A$20 million priority offer for eligible Westgold shareholders. The IPO will provide Valiant with the necessary funding to unlock its exploration potential and bring forward value from smaller assets.

Argonaut Securities has been named as the lead manager to the IPO, while Thomson Geer is serving as the Australian legal adviser for the demerger and listing process. This partnership highlights the strong support that Westgold has received from leading industry players in its strategy to expand its operations.

In April this year, Westgold divested its Lakewood Mill processing facility near Kalgoorlie, Australia, to Black Cat Syndicate for a total consideration of A$85 million. The sale of this asset demonstrates Westgold’s commitment to streamlining its portfolio and focusing on higher-return investments.

The demerger plan is an exciting development in the gold mining sector, as it highlights the importance of innovation and strategy in driving growth and value creation. By separating its non-core assets into a new company, Westgold is taking a proactive approach to expanding its core operations and delivering value to shareholders.

With several small underground mines in care and maintenance, a range of open-pit opportunities, and exploration upside, Valiant has multiple near-term restart and growth options to deliver near-term cash flow. This provides an attractive opportunity for investors looking to capitalize on the potential of gold mining companies.

As the gold mining sector continues to evolve, it is clear that Westgold’s strategy to expand its core operations will be closely watched by industry observers. The demerger plan into Valiant Gold marks an important step in this journey, and further developments can be expected in the months and years ahead.

The success of the demerger plan will depend on various factors, including market conditions, commodity prices, and the ability of Valiant to unlock its exploration potential. However, with a strong track record of innovation and strategy, Westgold is well-positioned to deliver value to shareholders through this new venture.

As we look ahead to the future, it is clear that the gold mining sector will continue to play an important role in the global economy. Companies like Westgold Resources are at the forefront of this industry, driving growth and value creation through their innovative strategies and commitment to excellence.

The potential of Valiant Gold is vast, with a combined mineral resource of 15.6 million tonnes at 2.4 grams per tonne gold for 1.2 million ounces. The company’s multiple near-term restart and growth options provide an attractive opportunity for investors looking to capitalize on the potential of gold mining companies.

Westgold’s strategy to expand its core operations is a proactive approach to delivering value to shareholders. By separating its non-core assets into a new company, Westgold is taking control of its future and positioning itself for long-term success.

The gold mining sector will continue to play an important role in the global economy, driven by innovation and strategic thinking from companies like Westgold Resources. As we look ahead to the future, it is clear that Valiant Gold will be a significant player in this industry.

In conclusion, Westgold’s demerger plan into Valiant Gold marks a significant development in the company’s strategy to expand its core operations. With multiple near-term restart and growth options, Valiant has an attractive opportunity for investors looking to capitalize on the potential of gold mining companies.