Westgold to demerge noncore Murchison assets into Valiant Gold

The transaction, which is subject to Australian Securities Exchange approval, is targeted for completion by late March 2026.

Valiant is expected to list in the third quarter of the 2026 and raise between $65-million and $75-million before costs, with eligible Westgold shareholders able to participate in a $20-million priority offer.

Westgold MD and CEO Wayne Bramwell said the move would allow the company to sharpen its focus on its larger operating hubs, while unlocking value from assets not included in its three-year outlook.

“Westgold is focused on expansion of our larger, core operating assets,” Bramwell said, adding that the creation of Valiant would establish “an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages”.

The Reedy’s and Comet projects comprise an exploration and development portfolio with four historic underground mines, recent production history and combined mineral resources of 15.6-million tonnes at 2.4 g/t gold, for 1.2-million ounces. The assets are currently on care-and-maintenance and do not contribute to Westgold’s near-term production profile.

As part of the demerger, Westgold and Valiant intend to enter into an ore purchase agreement, allowing ore from the demerged assets to be processed at Westgold’s Cue and/or Meekatharra processing hubs. This is expected to provide Valiant with a low-capital, fast-tracked pathway to early production and cash flow, while supplying Westgold with additional feed not scheduled in its current three-year plan.

Bramwell said the ore purchase agreement model had already been proven within the company’s portfolio. “This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold,” Bramwell said, noting that New Murchison Gold had successfully transitioned from explorer to producer using the same approach.

“Valiant can replicate this success,” he added, pointing to multiple restart and growth options across small underground mines, openpit opportunities and exploration upside.

Following completion of the demerger and IPO, Westgold will retain a substantial equity interest in Valiant of about 48% at the minimum subscription level, or about 44% at the maximum subscription level, preserving upside exposure to future exploration and production success.

Valiant will be led by an established board and management team, with Derek La Ferla appointed as nonexecutive chairperson, Brendan Tritton as MD and Anthony Chamberlain as a nonexecutive director. Westgold chief growth officer Simon Rigby will also join the Valiant board as a nonexecutive director and Westgold nominee.

Westgold said the demerger would simplify its Murchison business and align with its capital allocation strategy. Bramwell said that while Reedy’s and Comet held value, they were unlikely to be redeveloped by Westgold in the next three years.

“Demerging these assets is a capital efficient model for Westgold,” he said. “In the hands of the Valiant team these assets have a real opportunity for fast-track development and with an ore purchase agreement, a line of sight on cash flow.”

Ahead of the IPO, Westgold will provide Valiant with an unsecured, interest-free loan facility of up to $3-million to enable early work on the assets, with repayment to occur following completion of the listing.

Argonaut Securities has been appointed lead manager to the IPO, with Thomson Geer acting as Australian legal adviser on the demerger and listing process.