Westgold Resources Limited (ASX: WGX) announced on 19 May 2026, the divestment of its Chalice Gold Project to Corazon Mining Limited (ASX: CZN) for a total consideration of $25.7 million. Westgold Resources is a leading, ASX100 Australian gold producer, with operations comprising four mining hubs and combined processing capacity of approximately 6 million tonnes per annum across the Murchison and Southern Goldfields. This transaction finalises a key phase in Westgold’s portfolio optimisation strategy, which has previously brought forward around $215 million in value.
The $25.7 million consideration for Chalice is structured to include $8.0 million in cash, with $250,000 paid upon agreement execution and $7.75 million due at completion. Additionally, Westgold will receive $6.7 million via the issue of 47.6 million ordinary shares in Corazon, valued at $0.140 per share, which will give Westgold an approximate 19.9% interest in Corazon’s issued share capital post-completion and Corazon’s capital raising. The remaining $11.0 million comprises deferred cash payments, contingent on specific milestones, including $4.0 million on the 12-month anniversary of completion, and two separate $3.5 million payments linked to Corazon announcing JORC Mineral Resource Estimates at Chalice of 300,000 and 500,000 ounces respectively.
Westgold Managing Director and CEO Wayne Bramwell commented on the divestment, stating it marks the completion of their non-core asset sales under the portfolio optimisation strategy, which has simplified the portfolio and delivered significant value for shareholders. He further noted that Westgold retains exposure to future upside at Chalice through its strategic shareholding in Corazon. The completion of the transaction is subject to customary conditions precedent, including Corazon securing at least $15.0 million in a capital raising – for which it has already received firm commitments for $16.5 million – and obtaining shareholder and ministerial approvals.
This strategic move allows Corazon Mining to acquire 100% of Chalice, positioning it as a core asset with a dedicated management team focused on accelerated exploration and development. Westgold will also hold the right to appoint a nominee to the Corazon Board, underscoring its continued interest in the project’s potential.
