Ke zu 0,90 aud!
Placement and Conditional Sale of Lithium RoyaltiesWestgold Resources Limited (ASX:WGX) (Westgold) is pleased to advise that it has completed a shareplacement of 26 million fully paid ordinary shares at A$0.90 per share to raise a gross of A$23.4 million.The placement was made to professional and institutional investors. The placement was led by CanaccordGenuity Australia Pty Ltd and issued under the company’s Listing Rule 7.1 capacity.The placement replenishes the working capital applied by the company to the purchase and re-build ofunderground mining contractor, Australian Contract Mining Pty Ltd. The raising leaves Westgold adequatelyfunded for its continued growth in gold output from its Murchison operations.In addition, and keeping with Westgold’s strategy to concentrate on its key gold assets, Westgold advisesthat it has entered into a conditional letter of intent to divest the non-core lithium royalties at Mt Marionand Buldania for a headline sale price of A$15 million to SilverStream SEZC. The agreement allows for anexclusive 75-day period to complete due diligence and generate AMPLA style royalty documentation.At the end of the exclusivity period, SilverStream SEZC will pay Westgold $7.5 million in immediate cash.Westgold will receive two further tranches of $3.75m in cash or shares (at SilverStream SEZC’s election). Theagreement contains a break fee arrangement.Westgold had been planning a demerger of all its lithium assets, however, following receipt of this alternativeproposal, Westgold decided that a sale of the lithium royalties was in the immediate best interests of itsshareholders.Westgold will retain its valuable lithium exploration and mining rights on the Hampton Locations 53 and 59adjacent to the Mt Marion Lithium Mine. The sale of the lit
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