Highlights

  • Westgold will demerge non-core Reedy and Comet assets into Valiant Gold through an IPO.
  • Valiant plans to raise AUD 65–75 million to fund exploration and mine restart activities.
  • Ore Purchase Agreement with Westgold provides processing access and near-term cash flow pathway.

Westgold Resources Limited (ASX:WGX) has confirmed plans to demerge its non-core Reedy’s and Comet gold assets in Western Australia’s Murchison region into a new standalone entity, Valiant Gold Limited. The demerger is expected to be completed by late March 2026, subject to regulatory approvals and completion of a concurrent initial public offering (IPO) by Valiant.

The assets to be transferred do not contribute to Westgold’s current three-year outlook. Through the demerger, Westgold aims to simplify its portfolio and concentrate capital and management attention on its larger operating assets across the Murchison and Southern Goldfields regions.

Asset Base and Resource Profile
The Reedy’s and Comet projects are 100% owned brownfield gold assets with a combined Mineral Resource of 15.6 Mt at 2.4 g/t Au, containing approximately 1.2 Moz of gold. The projects include several historic underground mines with prior production history and multiple open pit opportunities.

Historically, Reedy’s has produced around 820 koz of gold, while Comet has delivered approximately 257 koz. Both assets were placed on care and maintenance in FY23 when gold prices were near AUD 2,400 per ounce.

Funding and IPO Details
Concurrently with the demerger, Valiant intends to list on the ASX through an IPO priced at AUD 0.25 per share, targeting gross proceeds of between AUD 65 million and AUD 75 million. The IPO will include a priority offer of approximately AUD 20 million for eligible Westgold shareholders, alongside an institutional and broker offer.

Following completion of the IPO, Westgold is expected to retain an equity interest of around 44% to 48% in Valiant, depending on the final subscription level.

Ore Purchase Agreement and Processing Access
As part of the transaction, Westgold and Valiant plan to enter into an Ore Purchase Agreement on market terms. This agreement will allow ore from the demerged assets to be processed at Westgold’s Cue and/or Meekatharra processing hubs. The arrangement provides Valiant with a processing pathway without constructing standalone infrastructure, while supplying Westgold with additional ore outside its current production schedule.

Capital Support and Timeline
Westgold has also agreed to provide Valiant with an unsecured, interest-free loan facility of up to AUD 3 million to support early-stage work prior to IPO completion. The facility is expected to be repaid from IPO proceeds.

Share Price Snapshot
WGX was trading 2.540% lower at AUD 5.945 per share as of 15 December 2025.