Westgold Sells Peak Hill in $58.3M Deal, Forging New Murchison Partnership

PERTH, Western Australia – May 04, 2026 – Westgold Resources Limited has announced a landmark deal to divest its Peak Hill Gold Project to emerging explorer Great Boulder Resources Limited in a transaction valued at A$58.3 million, signaling a significant strategic shift for both companies in Western Australia's prolific Murchison gold region.

The agreement is far more than a simple asset sale, establishing a multi-faceted partnership that sees Westgold retain significant exposure to the project's future success. The total consideration includes A$25.0 million in cash, A$33.3 million in Great Boulder shares, and a perpetual 1.0% Net Smelter Return (NSR) royalty on all future production from Peak Hill. The share component will leave Westgold, an ASX100 gold producer, as a substantial 19.9% shareholder in Great Boulder, complete with the right to appoint a nominee to its board.

Westgold's Strategic Pivot

This divestment is a cornerstone of Westgold's broader corporate strategy to optimize its portfolio and sharpen its focus on larger, core operational assets. The company has been actively recalibrating its holdings to concentrate capital and resources on its primary mining and processing hubs, such as the Beta Hunt and Bluebird-South Junction mines, which are poised to drive future growth.

The Peak Hill sale contributes to an impressive A$208 million in shareholder value unlocked by Westgold's optimization program this financial year alone. This follows the successful divestment of the Mt Henry-Selene project, which ultimately yielded A$110 million. The company still holds potential upside from deferred payments and royalties from these deals.

Westgold's Managing Director and CEO, Wayne Bramwell, commented on the logic of the transaction in a public statement. "Peak Hill is a non-core asset for Westgold, and Great Boulder is a logical acquirer given its regional focus in the Murchison," he said. "Peak Hill is not in our 5-year plan, and this divestment supports our focus on larger, core mines and processing hubs."

The deal structure allows Westgold to realize immediate cash value from a non-essential asset while maintaining an indirect interest in its development through a significant equity stake and a long-term royalty stream. This approach effectively de-risks the asset from Westgold's direct operational pipeline while ensuring shareholders can still benefit from Great Boulder's dedicated efforts to advance the project.

Great Boulder's Transformational Leap

For Great Boulder Resources, the acquisition is being hailed as transformational, catapulting the junior explorer towards the status of an emerging gold producer. The deal significantly expands its footprint in the Northern Murchison, adding a substantial JORC 2012 Mineral Resource of 481,000 ounces of gold to its portfolio.

The Peak Hill project, with a rich history of production dating back to 1889 and over 900,000 ounces poured historically, is located just 100km from Great Boulder's flagship Side Well Gold Project. This creates a powerful regional consolidation, allowing the company to build a multi-million-ounce gold hub.

Crucially, the deal provides a "capital-light" pathway to production. An accompanying Ore Purchase Agreement (OPA) grants Great Boulder access to Westgold’s extensive network of Murchison processing hubs, including facilities at Meekatharra, Fortnum, and Cue. This circumvents the immense capital expenditure and lengthy permitting process typically required to build a standalone processing plant, dramatically accelerating the project's timeline to cash flow.

To fund the acquisition and an aggressive development plan, Great Boulder has launched a A$40 million capital raising. The company intends to deploy these funds immediately, with a 60,000-metre multi-rig drilling campaign planned for the next six months across both Peak Hill and Side Well. The objective is to update Peak Hill's resource estimate and bring the project to a "mining-ready" status within 12 months.

A New Model for Mining Partnerships

Perhaps the most significant aspect of the transaction is the innovative partnership model it establishes, which could serve as a blueprint for future deals between major miners and junior explorers. Rather than a clean break, the agreement creates an interdependent relationship designed for mutual benefit.

Beyond the equity and royalty, the binding Ore Purchase Agreement is a key strategic element. In a region where processing capacity can be a major bottleneck, securing access to established mills is a significant competitive advantage. For Westgold, it provides a new revenue stream and increases the utilization of its expensive infrastructure. Industry analysts have noted that processing mills are becoming "power plays" in Western Australia, with toll treatment agreements increasingly becoming a vital component of asset sales.

Furthermore, the two companies have entered into a non-binding Strategic Collaboration Agreement (SCA) to explore options for fast-tracking the development of Great Boulder's Side Well project, with the potential for its ore to also be processed at Westgold’s hubs. This deepens the alliance, positioning Westgold as a strategic partner invested in Great Boulder's overall regional success, not just the outcome at Peak Hill.

This collaborative structure allows the major producer to foster development in its backyard, retain upside in promising ground, and optimize its own operations, while the junior explorer gains access to capital, infrastructure, and expertise that would otherwise be out of reach.

The Path to Completion

The transaction is now moving toward completion, contingent upon several key conditions. These include the successful finalization of Great Boulder's A$40 million two-tranche capital raising, which is already well underway.

Additionally, the deal requires approval from Great Boulder's shareholders for the issuance of shares to Westgold. A shareholder meeting is scheduled for mid-June 2026 to vote on the necessary resolutions. Finally, the transfer is subject to standard regulatory approvals, including Ministerial consent for the transfer of the mining tenements.

Both companies are working towards a target completion date in mid-June 2026. Should all conditions be met, the deal will not only reshape the landscape of the Murchison goldfields but also reinforce a new, more collaborative model for growth and value creation in Australia's vibrant gold sector.