-- Westgold Resources (ASX:WGX) executed a binding asset sale agreement and royalty agreement with Great Boulder Resources (ASX: GBR) to divest the Peak Hill gold project in Western Australia for a total consideration of AU$58.3 million plus a 1% net smelter royalty, according to two separate Monday Australian bourse filings.
The total cash consideration is AU$25 million, and 391.7 million fully paid ordinary shares in Great Boulder will be issued to Westgold, translating into a 19.9% stake.
Great Boulder and Westgold entered into an ore purchase agreement to process ore at one or more of Westgold's three mills in the region. They also formed a nonbinding strategic collaboration to evaluate
options to fast-track Great Boulder's Side Well gold project.
Great Boulder is also seeking firm commitments from institutional investors regarding a two-tranche placement to raise AU$40 million via the issue of around 470.6 million new fully paid ordinary shares at AU$0.085 per new share.