Westgold's Big Move: Lakewood Mill Sale Unlocks Gold Mine Potential!

Ladies and gentlemen, buckle up! Westgold Resources Limited just pulled off a massive deal that's going to shake up the gold mining world. They've completed the sale of their non-core Lakewood Milling Operation to Black Cat Syndicate Limited for a whopping $85 million. This isn't just any sale; it's a strategic masterstroke that's going to supercharge Westgold's operations and send their stock soaring!



Let's break it down. Westgold is an unhedged gold producer with six mines and now four mills operational across two of Western Australia's most abundant goldfields. Their corporate strategy is crystal clear: focus on larger, lower-cost mines and mills to unlock value for shareholders. And guess what? The divestment of Lakewood is the perfect example of this strategy in action!

Here's the deal: Westgold received $25 million in cash by March 31, 2025, with an additional $20 million payment due by June 30, 2025, and the final cash payment of $25 million on November 30, 2025. But that's not all! They also got $15 million in BC8 scrip issued at $0.76 per share. Talk about a sweet deal!

Now, let's talk about the long-term benefits. Westgold retains priority access to process up to 200ktpa of ore at Lakewood via a toll-treating agreement for two years. This means they can still use Lakewood's processing capacity while focusing on expanding their Higginsville mill. And get this: a study on the option to expand the Higginsville Mill is nearing completion, with results expected in April. This expansion could see the mill's capacity grow from 2.6Mtpa to 4.0Mtpa. Can you say "BOOM!"?

But wait, there's more! By consolidating their processing capacity at Higginsville, Westgold can prioritize higher-grade ore, realize lower operating costs, and bring other regional underground and open pit targets into focus. This is a no-brainer move that's going to pay off big time!

Now, let's talk about the potential risks and challenges. Consolidating processing capacity at a single location can be risky. Any disruptions or downtime at the Higginsville mill could significantly affect Westgold's overall production and operational efficiency. But here's the thing: Westgold is confident in their strategy, and they've got a plan to mitigate these risks. They're investing in upgrading critical mine infrastructure to deliver consistent outputs above 2Mtpa run rates this calendar year. And with the expansion study results expected in April, they're well on their way to achieving their goals.

So, what's the bottom line? Westgold's sale of the Lakewood Mill is a game-changer. It's a strategic move that's going to unlock value for shareholders, reduce costs, and simplify their Southern Goldfields business. And with the expansion of the Higginsville mill on the horizon, Westgold is poised for even greater success.



So, do yourself a favor and get in on this action. Westgold is a gold mine waiting to happen, and this sale is just the beginning. Don't miss out on this opportunity to own a piece of the gold mining revolution. BUY NOW!