en.Wedoany.com Reported - Australian gold producer Westgold Resources Ltd (ASX:WGX) has completed the sale of the Peak Hill gold project, located in the Northern Murchison Goldfields of Western Australia, to Great Boulder Resources Ltd (ASX:GBR) for a total consideration of $54.4 million. The transaction aligns with Westgold's strategy to streamline its asset portfolio and realize value for shareholders from non-core, non-producing assets.

Westgold Resources Ltd is a mid-tier gold producer headquartered in Perth, Western Australia, with multiple operating gold mines and processing hubs, primarily concentrated in the Murchison and Goldfields regions of Western Australia. Great Boulder Resources Ltd is also a Western Australian gold exploration and development company, with its flagship asset being the Side Well gold project, located just 100 kilometers from the Peak Hill gold mine.

Westgold Managing Director and CEO Wayne Bramwell stated that the sale is transformative for Great Boulder, with upfront cash payments and equity consideration delivering immediate value to Westgold shareholders. Westgold shareholders also retain upside potential from the project's future development through a 1.0% net smelter return (NSR) royalty, while Great Boulder gains a processing solution via Westgold's Murchison processing hub.

The Peak Hill gold project is situated in the Northern Murchison Goldfields of Western Australia, approximately 120 kilometers from Meekatharra, and lies within trucking distance of multiple processing facilities. The project has a history of open-pit mining and boasts established mining infrastructure and a resource base. This transaction provides Great Boulder Resources Ltd with a strategic project adjacent to its core assets and resolves ore processing through Westgold's facilities, lowering the development threshold.

This asset sale is another step in Westgold Resources Ltd's portfolio optimization efforts. The company has previously divested several non-core assets, focusing resources and management attention on its core operating mines. For Great Boulder Resources Ltd, the acquisition of the Peak Hill gold mine further expands its asset portfolio in the Murchison Goldfields, enhancing scale effects and synergy potential in the region.