Westgold Resources has divested its Peak Hill gold project to West Perth-based junior Great Boulder Resources in a deal worth at least $58.3 million.
Great Boulder told the market on Monday would acquire the project – located 100km from its Side Well gold project in the Murchison – via Westgold’s subsidiary, Aragon Resources, in a cash and scrip-based deal.
Great Boulder, which has a market cap of $96.73 million, will pay a $25 million cash consideration to Wayne Bramwell-led Westgold, coupled by $33.3 million in shares, which equates to around 391.7 million shares, at 8.5 cents per share.
The junior will also undertake a $40 million two-tranche capital raise, which proceeds allocated towards an intense drilling program at both Side Well and Peak Hill.
Aside from securing a 19.9 per cent stake in Great Boulder, Westgold will also receive a 1 per cent net smelter return royalty in relation to future production at Peak Hill, where mining has not occurred since 1997.
Additionally, Great Boulder and Westgold have finalised an ore purchase agreement, where ore from Peak Hill will be processed at Westgold’s nearby mills – Bluebird, Fortnum and Tuckabianna.
The junior told the market it is eying off a combined 60,000m multi-rig drilling program across both Side Well and Peak Hill and is hopeful of releasing an updated mineral resource estimate at Peak Hill, located 120km from Meekatharra, by November.
Westgold and Great Boulder have also entered into a non-binding strategic collaboration, which could result in Side Well’s development being accelerated courtesy of its ore also be processed at nearby Westgold processing facilities.
Focus remains on larger mines remains
In Great Boulder’s ASX statement on Monday, Mr Bramwell said the goldminer was looking forward to working close with the junior – and that the divestment of Peak Hill was in line with its emphasised focus on core assets.
“Westgold has high regard for its Murchison goldfields neighbour, and their commitment to becoming a miner,” Mr Bramwell said.
“As such, Great Boulder is a logical choice as a future production partner for the Peak Hill gold project.
“Westgold continues to support smaller companies in their journey to being producers across WA and looks forward to assisting Great Boulder with a capital light opportunity that leverages our extensive Murchison processing infrastructure.”
During the March 2026 quarter, Westgold produced 93,145 ounces of gold, and 288,500oz in the first nine months of FY26.
Of this total, 64,132oz was sourced from its Murchison operations.
As of 1.04pm AWST, Westgold shares were up 1 per cent to $5.80.
Great Boulder boss welcomes acquisition
Great Boulder managing director Andrew Paterson says the deal puts the junior in an ideal position.
“The acquisition of the Peak Hill gold project is hugely transformational for Great Boulder,” he said.
“Not only does it add a significant gold endowment to our existing Side Well gold project, but with the ore purchase agreement and support of leading gold producer Westgold Resources, it places us on a pathway to capital light production.”
