Westgold Resources has weighed in on speculation it has potentially found a buyer for the Lakewood Mill processing facility it acquired in its $1.2 billion merger with Karora Resources.
The Australian Financial Review revealed Westgold is tipped to have the facility up for auction, garnering interest from a number of parties. The Westgold board responded confirming a sale is on the cards.
“Westgold would like to clarify that…it continues to assess strategic options and how best to rationalise its expanded portfolio of assets, including its non-core assets, which includes a potential sale of the Lakewood processing facility,” Westgold said in a statement yesterday.
“Westgold’s strategy remains to focus on expanding its larger, lower cost processing plants and mines to reduce operating cost and maximise cash flow.”
Westgold and Karora officially merged on August 1 2024 to create a 400,000-ounce-per-year producer, firmly cementing the new entity as one of Australia’s top five gold producers.
Karora came with a range of assets, including the Beta Hunt and Higginsville gold mines, as well as the Lakewood Mill near Kalgoorlie.
Karora bought the mill in July 2022 for $80 million, but its prospective near-future sale could bring in up to $95 million.
“This review is ongoing and Westgold will advise the market if or when definitive and legally binding agreements are entered into in respect of any such divestment in accordance with its continuous disclosure obligations,” Westgold said.
