Wedoany.com Report-Dec.18, Westgold Resources has entered into a binding asset sale agreement to transfer its Mt Henry-Selene gold project, situated near Norseman in Western Australia, to Alicanto Minerals for a total consideration of A$64.6 million.

The Mt Henry project contains a gold resource of 900,000oz.

The project hosts a gold resource of 900,000 ounces across multiple deposits along a 16-kilometer trend within the Southern Kalgoorlie terrane. Mineralization remains open along strike and at depth in each deposit, indicating opportunities for further resource growth and regional exploration potential.

Operations at Mt Henry concluded in 2019. Current resources are defined within optimized pit shells based on a gold price of approximately A$2,169 per ounce. With prevailing gold prices exceeding A$6,000 per ounce, there is considerable scope to enlarge these pit designs.

Under the agreement terms, Westgold will receive A$15 million in cash and around 357.1 million Alicanto shares valued at A$19.6 million at closing. A further deferred consideration of A$30 million, payable in cash or shares at Alicanto's election, is linked to specified performance milestones through the issuance of performance rights.

Westgold managing director and CEO Wayne Bramwell said: "The divestment of Mt Henry to Alicanto follows the recently announced spin-out of the company's non-core Murchison projects to Valiant Gold. This transaction delivers Westgold shareholders an attractive mix of cash, exposure to project upside via a large strategic shareholding and deferred consideration payable on specific project milestones. Westgold is pleased to partner with Alicanto, whose board and management team are experienced and committed explorers and have a demonstrable record of rapidly advancing gold projects. Alicanto's planned drilling investment provides a pathway for exploration success and potential future development, which can unlock additional value for all stakeholders."

The Mt Henry project was acquired as a non-core holding through Westgold's merger with Karora Resources and is part of the company's broader 3,200 square kilometer tenement package.

Bramwell added: "Westgold continues to progress discussions in relation to the potential sale of its Peak Hill and Chalice gold assets following strong inbound interest. The company will continue to inform the market of material developments in accordance with its continuous disclosure obligations."

Following transaction completion, Westgold will hold a 19.9 percent interest in Alicanto and gain the right to appoint a director to its board.

Argonaut acted as financial adviser and Thomson Geer as legal adviser to Westgold on the deal.

In a separate development earlier this month, Westgold resumed high-grade gold production at the Great Fingall mine near Cue in Western Australia, marking the first output from this historic reef in over a century.

This sale allows Westgold to streamline its portfolio by divesting non-core assets while retaining meaningful exposure to future upside through equity and milestone payments. The arrangement supports Alicanto's strategy to advance exploration and potential development at Mt Henry-Selene, leveraging favorable gold market conditions and the project's established resource base.