Gold miner Westgold Resources has agreed to divest its noncore Mt Henry-Selene gold project, near Norseman in Western Australia, to Alicanto Minerals in a transaction valued at $64.6-million, as the ASX- and TSX-listed gold producer sharpens its focus on larger, core operating assets.

The binding asset sale agreement will see Alicanto acquire 100% of the Mt Henry-Selene project, including all associated tenements, licences and agreements, with consideration comprising $15-million in cash, a 19.9% equity stake in Alicanto valued at about $19.6-million, and up to $30-million of deferred consideration linked to agreed performance milestones.

Westgold said in an announcement that the divestment realised value from an asset that was prospective but did not form part of its long-term strategy, following its merger with Karora Resources, which added a number of non-core projects to its portfolio.

The transaction also follows the recently announced spin-out of the company’s non-core Murchison projects.

“The divestment of Mt Henry to Alicanto follows the recently announced spin-out of the company’s non-core Murchison projects to Valiant Gold. This transaction delivers Westgold shareholders an attractive mix of cash, exposure to project upside via a large strategic shareholding and deferred consideration payable on specific project milestones,” said MD and CEO Wayne Bramwell.

He added that Westgold was pleased to partner with Alicanto, citing the explorer’s track record and plans to accelerate drilling at the project.

“Westgold is pleased to partner with Alicanto, whose board and management team are experienced and committed explorers and have a demonstrable record of rapidly advancing gold projects. Alicanto’s planned drilling investment provides a pathway for exploration success and potential future development, which can unlock additional value for all stakeholders,” Bramwell said.

Under the terms of the deal, Westgold will receive $15-million in cash, with $1-million payable on completion of the first tranche of Alicanto’s capital raising and the balance at transaction completion. Westgold will also receive consideration shares equal to 19.9% of Alicanto’s issued capital post-transaction, priced at $0.055 a share.

The deferred component comprises performance rights that may be settled in shares or cash, subject to milestones including the completion of 20 000 m of drilling, the declaration of a JORC (2012) mineral resource of at least two-million ounces at Mt Henry, and a positive final investment decision to develop one or more deposits at the project. The performance rights have a five-year expiry.

On completion, Westgold will emerge as a 19.9% shareholder in Alicanto, with the right to appoint a nominee to the Alicanto board and participation rights in future capital raisings, subject to ASX listing rules.

Completion of the transaction is subject to customary conditions, including Alicanto completing a capital raising of at least $25-million, shareholder approvals, regulatory consents and the transfer of tenements. Alicanto has received firm commitments for a $28-million capital raising and expects to convene a shareholder meeting on or around January 30, 2026.

Westgold said it continued discussions regarding the potential sale of its Peak Hill and Chalice gold assets following strong inbound interest.

The Mt Henry-Selene gold project is located within the Norseman–Wiluna greenstone belt and hosts a combined mineral resource of 915 000 oz of gold and an ore reserve of 478 300 oz, with mineralisation remaining open at depth and along strike.