Westgold Resources divests Chalice project to Corazon Mining for $25.7m
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The news: Westgold has divested its Western Australian-based Chalice Gold Project to Corazon Mining for $25.7 million.
The context: Under the transaction, Corazon will acquire 100% of Chalice, including the mining licence, existing contracts and technical data. It has also secured firm commitments for a $16.5 million capital raise to help fund the acquisition.
Upon completion of the sale and the capital raise, Westgold will hold a 19.9% stake in the company with the right to appoint a nominee to the Corazon board, as well as equity participation rights for future capital raisings.
Corazon will hold a shareholder meeting in late-June to seek approval for the issuance of consideration shares to Westgold, alongside the capital raising.
What they said: “The divestment of Chalice will mark the completion of our non-core asset sales under our portfolio optimisation strategy which has simplified the portfolio and brought forward significant value for Westgold shareholders,” Westgold CEO Wayne Bramwell said.
The source: ASX
