Westgold Resources is set to demerge its non-core Reedy and Comet gold assets into a newly formed, ASX-listed entity called Valiant Gold. The company intends to launch an initial public offering (IPO) in the March quarter to support the venture. This strategic move will allow Westgold to sharpen its focus on core, higher-grade operations located across the Murchison and Southern Goldfields regions. Westgold Resources is an Australian gold mining company focused on creating value for shareholders through responsible and sustainable gold production. The company operates multiple mines and processing facilities in Western Australia.
Valiant Gold will acquire four small, historically significant underground mines that have seen recent production. These mines possess a combined Mineral Resource of 15.6 metric tonnes at 2.4 grams of gold per tonne of ore, amounting to 1.2 million ounces. According to Westgold chief executive Wayne Bramwell, the demerger aims to establish Valiant as an independent, well-funded gold company capable of unlocking value from smaller assets such as the Comet and South Emu-Triton underground mines. The move will also allow for the exploration potential of the Reedy and Comet packages to be fully realised.
Valiant intends to raise between $65 million and $75 million through the IPO. This includes a $20 million priority offer for eligible Westgold shareholders. Depending on the final subscription level, Westgold will retain a significant stake in Valiant Gold, ranging from 44 to 48 per cent. This ensures Westgold maintains a considerable interest in the future success of the demerged assets.
The creation of Valiant Gold is designed to allow a dedicated team to concentrate on these specific assets and maximise their potential, while Westgold hones its attention on its primary operations. The demerger and IPO represent a strategic realignment for Westgold, optimising its portfolio for long-term growth and profitability.
