Westgold agrees to sell Lakewood mill to Black Cat for $85m
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The news: Gold miner Westgold Resources has agreed to sell its Lakewood processing facility near Kalgoorlie in Western Australia to ASX small cap Black Cat Syndicate for $85 million.
The deal comes after Westgold told investors last week that it was considering a potential sale of the site.
The numbers: The $85 million consideration is comprised of $70 million in cash, to be paid in instalments over nine months, and $15 million in Black Cat shares at an issue price of 76 cents per share. They last closed at 82 cents a share.
The context: Westgold acquired Lakewood following its $2.5 billion merger with Toronto-listed Karora Resources last year.
The miner previously said that the potential sale of the facility would be part of a wider strategy to rationalise its expanded portfolio of assets.
The source: ASX
