09/04/2019 - 11:33

Westgold sells lithium royalties for $15m

09/04/2019 - 11:33

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Westgold Resources has sold two lithium production royalties in the Goldfields to Silverstream, just over four months after it terminated an agreement to sell the royalties to the same company.

Westgold sells lithium royalties for $15m
The Mt Marion lithium project is located near Kalgoorlie, and is jointly owned by Mineral Resources, Neometals and Jiangxi Ganfeng Lithium.

Westgold Resources has sold two lithium production royalties in the Goldfields to Silverstream, just over four months after it terminated an agreement to sell the royalties to the same company.

Westgold announced it entered into a binding agreement with Silverstream to sell its Mt Marion and Buldania production royalties for $13 million and $2 million, respectively.

The Buldania agreement is subject to pre-emptive rights with Liontown Resources.

Westgold was advised by Canaccord Genuity on the transaction.

Silversteam is a Cayman-Islands based investment company with a focus on precious metals assets. 

The Mt Marion lithium project is located approximately 40 kilometres south west of Kalgoorlie, and is a 50-50 joint venture between Mineral Resources and China-based Jiangxi Ganfeng Lithium.

The Buldania project is fully owned by Liontown, and is located near Norseman.

On December 7, Westgold announced it entered a conditional letter of intent to sell Mt Marion and Buldania royalties for a total of $15 million to Silverstream.

On December 31, Westgold received a conditional offer from Cobalt 27 Capital Corp to buy Mt Marion and Buldania royalties for a cash consideration of $250,000 and 200 metric tonnes of cobalt metal.

Westgold said it was a superior offer with cobalt metal prices at the time sitting at around $US54,500 ($76,450) per tonne.

In total, the offer equated to approximately $15.5 million.

Today, Westgold said its sales agreement with Cobalt 27 expired without being completed.

Shares in Westgold were down 2.97 per cent to trade at $1.24 each at 12.55pm AEDT.

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