Black Cat and Westgold complete Lakewood deal
Gold miner Black Cat Syndicate has completed the acquisition of the 1.2-million-tonne-a-year Lakewood processing facility from Westgold Resources, securing a key asset for its Kal East gold operation in Western Australia.
The A$85-million transaction, which aligns with Black Cat’s “more gold, sooner” strategy, was finalised on March 31, with an initial A$24-million payment and the issuance of 19.7-million Black Cat shares. Two deferred payments of A$45-million will follow in June and November, funded from operating cash flow.
Following the acquisition, Lakewood’s workforce has transitioned to Black Cat and continues to operate the facility. Processing has started with ore from the Myhree deposit, which was delivered immediately after completion.
Black Cat reports that mining at the Myhree and Boundary openpits remains ahead of schedule, with more than 100 000 t of ore stockpiled for processing at Lakewood until openpit operations conclude in October. Black Cat is optimising deposits at Kal East to ensure a seamless supply of ore to the plant.
For Westgold, the sale marks a strategic move to streamline operations and prioritise its larger, lower-cost mines and processing plants.
Westgold points out that it retains priority access to process up to 200 000 t/y of ore at Lakewood under a two-year toll-treating agreement.
"Westgold is an unhedged gold producer with six mines and now four mills operating across two of Western Australia’s most abundant goldfields. The sale of Lakewood reduces our cost base and simplifies our Southern Goldfields business," said Westgold MD and CEO Wayne Bramwell.
Westgold has redirected ore from its Beta Hunt operation to the 1.6-million-tonne-a-year Higginsville mill, where it expects to lower operating costs by processing higher-grade ore. The company is nearing completion of a study on a potential expansion of the Higginsville mill, with results expected in April.
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