Westgold and Musgrave sign deal over WA projects
PERTH (miningweekly.com) – ASX-listed Westgold Resources and fellow-listed Musgrave Minerals have reached a cooperation agreement to explore and develop their assets in the Southern Murchison region of Western Australia.
Under the terms of the agreement, Westgold would provide funding for the further exploration of Musgrave’s assets in the region by taking a 15% diluted interest in Musgrave for A$3.36-million.
The 41.6-million Musgrave shares would be issued under the company’s existing placement capacity, and will be priced at 7c a share.
In addition to the share placement, the two companies would also study the commercialisation of Musgrave’s projects using both groups’ prospective mining skills and operating capacity.
“This is a nice deal with one of our closest Murchison region neighbours. Musgrave’s Cue project portfolio shows great promise and there are clear synergies with Westgold’s operations in the area,” said Westgold MD Peter Cook.
Musgrave MD Rob Waugh told shareholders that the transaction was a positive result for the company, and a strong endorsement of its projects, gold resource and upside exploration potential.
“Westgold has three operating mills in the region of our Cue project and is a highly regarded professional gold miner and processor,” he added.
Following the placement, Musgrave will have around A$5.5-million in cash, with Waugh saying that the strong cash position would enable the company to accelerate exploration while also progressing development studies on its Break of Day and Lena resources, within the Cue project area.
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