Westgold Resources Limited (WGX.AX, WGX.TP) has confirmed it will proceed with the demerger and initial public offering (IPO) of its non-core Reedy's and Comet assets in the Murchison region of Western Australia. These assets will be transferred to Valiant Gold Limited as part of the restructuring.
The demerger, executed by way of an asset transfer, is designed to simplify Westgold's Murchison business. This move allows the company to sharpen its focus on larger, higher-grade core operations across both the Murchison and Southern Goldfields regions.
Concurrently, Valiant Gold intends to undertake an IPO of fully paid ordinary shares, subject to ASX approval. The offering aims to raise between $65 million and $75 million (before costs) at an issue price of $0.25 per share. Valiant will also apply for admission to the official list of the ASX.
Upon completion of the demerger and IPO, Westgold will retain approximately 48% shareholding in Valiant at the minimum subscription level, and around 44% at the maximum subscription level.
In connection with the transaction, Westgold and Valiant plan to enter into an ore purchase agreement (OPA) on market terms. This arrangement will enable Valiant to process ore from the demerged assets at Westgold's Cue and/or Meekatharra processing hubs. The agreement provides Valiant with a fast-tracked, low-capex pathway to near-term gold production and cash flow, while supplying Westgold with additional ore not currently included in its three-year outlook.
The demerger and IPO align with Westgold's corporate strategy to streamline its portfolio and concentrate on expanding its core operating assets.
The transaction is subject to certain conditions, including Valiant obtaining an ASX conditional admission letter and securing valid applications for the minimum subscription under the IPO. Completion of the demerger is expected by late March 2026
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