Westgold Resources has announced plans to demerge its non-core Reedy and Comet gold projects into a new Australian Securities Exchange (ASX)-listed company, Valiant Gold, in the third quarter (Q3) of fiscal year 2026 (FY26).
The move is intended to streamline Westgold’s portfolio, allowing it to focus on larger, higher-grade core operations in the Murchison and Southern Goldfields regions.
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The transaction, which is contingent upon ASX approval, is due to be completed by late March 2026.
As part of the initial public offering (IPO), Valiant aims to raise between A$65m ($43.22m) and A$75m before costs, including a A$20m priority offer for eligible Westgold shareholders.
The Reedy and Comet projects comprise four historic underground mines with recent production and a combined mineral resource of 15.6 million tonnes (mt) at 2.4 grams per tonne (g/t) gold for 1.2 million ounces (moz).
Westgold managing director and CEO Wayne Bramwell said: “Westgold is focused on expansion of our larger, core operating assets. By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages.
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By GlobalData“Valiant will have a fast-track to cash flow with an ore purchase agreement (OPA) to be entered into with Westgold. This collaborative, capital-efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG).”
As part of the demerger, Westgold and Valiant plan to execute an OPA, enabling ore from the demerged assets to be processed at Westgold’s Cue and/or Meekatharra processing hubs.
Following the demerger and IPO, Westgold will retain a substantial equity stake in Valiant, holding around 48% at minimum subscription and 44% at maximum subscription, thereby preserving its exposure to exploration and production outcomes.
Bramwell added: “This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high-grade oxide ore to Westgold’s Meekatharra processing hub. Valiant can replicate this success.
“With several small underground mines in care and maintenance, a range of open-pit opportunities and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near-term cash flow.”
Argonaut Securities has been named as the lead manager to the IPO, with Thomson Geer serving as the Australian legal adviser for the demerger and listing process.
In April this year, Westgold divested its Lakewood Mill processing facility near Kalgoorlie, Australia, to Black Cat Syndicate for a total consideration of A$85m.
