https://www.miningweekly.com

Westgold raises more cash, divests lithium royalties

7th December 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – ASX-listed Westgold Resources has completed a share placement, raising A$23.4-million, while also announcing plans to divest of its non-core lithium royalties for A$15-million.

The company on Friday reported the placement of 26-million fully paid ordinary shares, priced at 90c each, to professional and institutional investors.

The company told shareholders that the placement replenished the working capital applied to the purchase and re-build of the underground mining contractor Australian Contract Mining, and left the company adequately funded to continue to grow its gold output from its Murchison operations, in Western Australia.

Meanwhile, as part of its strategy to concentrate on gold, Westgold has entered into a conditional letter of intent with SilverStream to divest of its non-core lithium royalties at the Mt Marion and Buldania lithium projects, for A$15-million.

The agreement allows for a 75-day exclusivity period to complete a due diligence.

At the end of the exclusivity period, SilverStream would pay Westgold A$7.5-million in immediate cash, with the company to receive two further tranches of A$3.75-million in either cash or SilverStream shares.

Westgold said on Friday that the company had been planning a demerger of all its lithium assets, however, following the receipt of the SilverStream proposal, the company has now decided that the sale of its lithium royalties was in the immediate best interest of shareholders.


The company will retain its lithium exploration and mining rights on the Hampton Locations adjacent to the Mt Marion lithium mine.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION