Westgold Resources (ASX:WGX) has signed a binding term sheet with Doray Minerals to buy its Andy Well and Gnaweeda Gold Projects.
Westgold will pay Doray $2.5 million in cash and $6.5 million in shares at completion which is planned to occur on or about February 15, 2019.
The signing of the Term Sheet with Doray is another step toward total consolidation in the Central Murchison Region by Westgold.
The Andy Well and Gnaweeda Gold Projects provide future mining opportunities of both high-grade underground ore and bulk oxide open pit ores respectively.
Located just 50 km up the Great Northern Highway from the Bluebird Processing Hub, the projects have the advantage of leveraging off a larger and lower cost production base.
Shares in Westgold Resources (ASX:WGX) are trading 2.41 per cent higher at $0.85.