West Wits Mining has signed an agreement to sell its Mt Cecelia Project in Western Australia, through the complete sale of its subsidiary Northern Reserves, to Aventine Resources.
The transaction structure involves a mix of equity and potential royalty income, alongside consideration linked to resource growth milestones.
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West Wits will retain a 1% net smelter returns (NSR) royalty on future production from the project, with Aventine having the option to buy back 50% of the royalty for A$2m.
Additionally, West Wits will receive A$2m in Aventine equity, providing potential future leverage from exploration success.
The agreement includes a deferred consideration of up to A$1m, payable in cash or shares, contingent on defining a Joint Ore Reserves Committee-compliant mineral resource estimate of at least 500,000oz of gold, with a minimum cut-off grade of 0.5 grams per tonne.
West Wits will incur no further capital commitments for the Mt Cecelia Project.
The transaction allows the company to unlock value from a non-core exploration asset while keeping a stake in future exploration and development at Mt Cecelia.
This is facilitated through equity participation in Aventine, alongside deferred milestone-related considerations, and a retained royalty interest in the project.
Notably, the structure enables exposure to the project’s progress with Aventine, a focused and resourced owner, without additional capital investment from West Wits.
The transaction is contingent upon standard conditions such as due diligence, the execution of definitive agreements, Aventine’s proposed Australian Securities Exchange listing and capital raising, and obtaining all necessary regulatory approvals.
West Wits Mining CEO Rudi Deysel said: “The divestment of the Mt Cecelia Project represents a strategically compelling outcome for West Wits shareholders.
“The transaction structure delivers immediate and potential future value, while preserving meaningful exposure to exploration success through equity participation and a royalty entitlement.
“It also enables the company to focus its capital and operational efforts on advancing the Qala Shallows Project and unlocking the broader potential of our Witwatersrand Basin portfolio.”
In December 2025, West Wits inaugurated the Qala Shallows gold mine west of Johannesburg in South Africa.
