Westgold Raises A$100M To Fast-Track WA Gold Developments

Westgold Resources Limited (ASX: WGX) has successfully completed a strongly supported placement to institutional and sophisticated investors to raise approximately A$100 million.

Funds raised in the Placement will be applied to accelerating Westgold’s Murchison and Bryah growth strategy in Western Australia. This strategy focusses upon establishing a systematic pathway towards a +400,000 ounce per annum gold production rate from FY24 and incorporates:

1. Organic Growth – increasing gold production and margins in FY23 and FY24 by:
2. Increasing existing Murchison mine production – the Bluebird UG Expansion Project;
3. Targeting ≈50% increase in annual production to ≈600,000 tonnes at ≈3g/t (≈50Koz Au);
4. Accelerating new Murchison mine production – the Fender UG Development Project;
5.  Targeting 300,000 – 420,000 tonnes at ≈2.8g/t Au (26-36Koz Au) annual mine production;
6. Advancing strategic development assets across the Murchison and Bryah including: Tuckabianna Development Project – the Causton’s / Tuckabianna West opportunities;  Day Dawn Development Project – the iconic Great Fingall and Golden Crown mines; Current Mineral Resource of 1.9Mt at @ 8.5g/t Au for ~500,000 oz; Tuckabianna and Fortnum mill expansions – to expand group processing capacity above 4Mtpa
7. Inorganic Growth – maintaining or extending optionality over stranded regional gold assets.

“The scale of market support of this placement strongly endorses Westgold’s growth plans and speaks to the growing momentum and the evolution of our business,” Executive Director Wayne Bramwell said.

“Westgold will systematically deploy these funds to expand gold production in FY23 and FY24 from Bluebird, Fender and the Tuckabianna trend, underpinning the expansion of our processing hubs.

“Concurrently, and with a view to FY24 onwards we will rapidly advance the strategic and iconic high-grade Great Fingall and Golden Crown mines.

“This placement heralds a new phase of corporate development at Westgold. Operationally we are sharply focussed on cost management and profitability of the business at its current scale and can now launch the next stage of growth for our shareholders from a position of increasing strength.”

For further information please visit: https://www.westgold.com.au/site/content/