Westgold Resources Limited (ASX | TSX: WGX) announced on May 19, 2026, the divestment of its Chalice Gold Project, located in the Southern Goldfields of Western Australia, to Corazon Mining Limited (ASX: CZN) for a total consideration of $25.7 million. Westgold Resources Limited is a leading ASX100 Australian gold producer, operating four mining hubs with a combined processing capacity of approximately 6 million tonnes per annum across Western Australia’s Murchison and Southern Goldfields. This transaction marks the completion of Westgold’s portfolio optimisation strategy, which has brought forward approximately $215 million in value from non-core asset sales.
The $25.7 million consideration for the Chalice Gold Project comprises multiple components. This includes $8.0 million in cash, with $250,000 paid upon execution of the agreement and $7.75 million due at completion. Additionally, Westgold will receive $6.7 million via the issue of 47.6 million ordinary shares in Corazon Mining at $0.140 per share, representing approximately a 19.9% interest in Corazon post-completion and its capital raise. The remaining $11.0 million is structured as deferred cash payments, contingent on the satisfaction of specific milestones, including a $4.0 million payment on the 12-month anniversary of completion, and two $3.5 million payments tied to Corazon announcing JORC (2012) Mineral Resource Estimates at Chalice of at least 300,000 and 500,000 ounces respectively.
Completion of the divestment is subject to several key conditions precedent. These include Corazon successfully completing a capital raising of at least $15.0 million, for which it has already received firm commitments totalling $16.5 million. Further conditions encompass Corazon receiving shareholder approval for the issue of both the consideration shares to Westgold and the shares under its capital raising, along with obtaining all necessary third-party consents, including Ministerial consent for the transfer of tenements. Westgold will also gain the right to appoint a nominee to the Corazon Board, provided its voting power remains above 10%.
Westgold Managing Director and CEO Wayne Bramwell commented that the divestment simplifies the company’s portfolio and has brought forward significant value for shareholders. He added that Westgold retains exposure to future upside at Chalice through its strategic shareholding in Corazon, which will now focus on accelerating exploration and development of the project as a core asset.
