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Westgold raises A$100m for growth plans

Image shows Australian currency

Photo by Bloomberg

14th March 2022

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Gold miner Westgold Resources has completed a A$100-million placement to institutional and sophisticated investors to accelerate its growth strategy in Western Australia.

The ASX-listed company on Monday said that it would place 48-million shares, at a price of A$2.10 each, under its existing placement capacity. The placement price represented an 13.9% discount to Westgold’s last trading price, and an 11.7% discount to the company’s five-day volume weighted average share price.

“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,” said executive director Wayne Bramwell.

“Westgold will systematically deploy these funds to expand gold production in 2023 and 2024 from Bluebird, Fender and the Tuckabianna trend, underpinning the expansion of our processing hubs. Concurrently, and with a view to 2024 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.”

Westgold’s Murchison and Bryah strategy is aimed at an ultimate production of more than 400 000 oz/y of gold from 2024.

Edited by Creamer Media Reporter

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