Westgold Resources has divested its Lakewood Mill processing facility near Kalgoorlie, Australia, to Black Cat Syndicate for a total consideration of A$85m ($53.2m).
The deal, first announced in February 2025, involves Black Cat acquiring 100% of the shares in Karora (Lakewood), which will be renamed Black Cat (Lakewood).
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This acquisition includes the facility’s infrastructure, licences, permits and contracts.
The deal comprises A$70m in cash, paid in instalments over nine months, and A$15m in Black Cat shares at an issue price of A$0.76 per share. These shares will be escrowed for 12 months from the date of issue.
As of 31 March 2025, Westgold has received an initial payment of A$25m, with A$20m due by 30 June 2025 and the remaining A$25m payable on 30 November 2025.
Black Cat will also assume approximately A$8m in rehabilitation liabilities.
As part of the agreement, Westgold retains optionality and priority access to process up to 200,000 tonnes per annum (tpa) at Lakewood via a toll-treating arrangement for two years.
Black Cat said the acquisition of the fully permitted and operational facility will allow it to accelerate gold production by approximately 15 months, increasing processing capacity by more than 50% from 800,000 tonnes per annum (tpa) to 1.2 million tonnes per annum (mtpa).
Since acquiring Lakewood in 2022, Karora Resources (now Westgold) has made several upgrades to the facility.
These include installing a larger 1,850kW motor to the primary mill, adding two additional carbon-in-leach tanks, constructing a new tailings storage facility, drilling new water bores and refurbishing a secondary mill to further increase capacity once commissioned.
Westgold managing director and CEO Wayne Bramwell said: “Westgold is an unhedged gold producer with six mines and now four mills operational across two of Western Australia’s most abundant goldfields.
“Our corporate strategy is to leverage our portfolio and focus on our larger, lower-cost mines and mills to unlock value for our shareholders. The divestment of Lakewood is consistent with this plan, reduces our cost base and simplifies our Southern Goldfields business.
“All Beta Hunt ore will now be directed to and processed at our Higginsville operation. This allows us to prioritise higher grade ore through this mill and realise the lower operating costs of this larger 1.6mtpa mill. A study on the option to expand the Higginsville Mill is nearing completion, with results to be reported in April.”
