Gold producer Westgold Resources (ASX:WGX) has formed an alliance with Golden Energy and Resources to support the company’s expansion and further growth options.
Singapore exchange listed Golden Energy and Resources has agreed to invest a diluted 10 per cent position in the new equity capital with a placement price of $1.88 per share.
The companies have signed a binding subscription agreement to complete the transaction.
The transaction will be complete in three tranches for a total of 36 million shares. The first tranche will settle on 5 December 2017, the second on 12 January 2018 and the third is subject to approval.
Golden Energy and Resources is affiliated with an Indonesian conglomerate with business interests in diverse industries including mining, power generation, real estate, agriculture, telecommunications and financial services.
Shares in Westgold Resources (ASX:WGX) closed 4.72 per cent higher to $1.89.