06:02 AM EST, 02/25/2025 (MT Newswires) -- Westgold Resources ( WGXRF ) late on Monday said it sold its non-core Lakewood milling operation to ASX-listed Black Cat Syndicate for $85 million.

The price includes $70 million in cash in staged payments and $15 million in Black Cat scrip, to be escrowed for 12 months. Black Cat will also assume about $8 million in rehabilitation liabilities.

Westgold will retain optionality and priority access of up to 200,000 tonnes per year of processing capacity at Lakewood via a toll-treating agreement for two years.

The transaction is scheduled to close by the end of March.

"The divestment of non-core assets such as Lakewood realizes some of the inherent value from second tier assets in our portfolio," said Westgold Managing Director and CEO Wayne Bramwell. "It consolidates our processing capacity in a single location and provides expansion capital for a much larger processing hub at Higginsville."