Wedoany.com Report-Dec.16, Westgold Resources has revealed plans to separate its Reedy and Comet gold projects through a demerger, creating a new entity named Valiant Gold that will seek listing on the Australian Securities Exchange in the third quarter of fiscal year 2026.

The Reedy and Comet projects have a combined mineral resource of 15.6mt at 2.4g/t gold for 1.2moz.

The initiative allows Westgold to concentrate resources on its primary, higher-grade operations located in the Murchison and Southern Goldfields areas of Western Australia. Subject to regulatory approval from the ASX, the process is scheduled for completion by late March 2026.

Valiant Gold intends to conduct an initial public offering to raise between 65 million and 75 million Australian dollars prior to expenses. This includes a 20 million Australian dollar priority allocation reserved for qualifying Westgold shareholders.

The assets being transferred consist of four historical underground mines with recent operational history. Together, they host a combined mineral resource of 15.6 million tonnes grading 2.4 grams per tonne gold, containing 1.2 million ounces.

"Westgold is focused on expansion of our larger, core operating assets. 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," said Westgold managing director and CEO Wayne Bramwell.

A key element of the arrangement involves an ore purchase agreement between Westgold and Valiant, permitting ore from the demerged projects to be treated at Westgold's existing processing facilities in Cue and/or Meekatharra.

Upon completion of the demerger and offering, Westgold will maintain a significant ownership position in Valiant, ranging from approximately 48 percent at the minimum subscription level to 44 percent at the maximum.

"This model saw NMG transition from explorer to producer, with gold production from NMG's Crown Prince deposit now delivering high-grade oxide ore to Westgold's Meekatharra processing hub. Valiant can replicate this success," Bramwell added. "With several small underground mines in care and maintenance, a range of open-pit opportunities and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near-term cash flow."

Argonaut Securities has been appointed lead manager for the offering, while Thomson Geer provides legal guidance on the demerger and listing procedures.

Earlier in 2025, Westgold completed the sale of its Lakewood Mill processing plant near Kalgoorlie to Black Cat Syndicate for 85 million Australian dollars.

The structured separation enables both companies to pursue tailored strategies, optimizing capital allocation and operational focus within their respective asset portfolios.