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Westgold raises $100m to uplift Murchison and Bryah

Westgold

Westgold Resources has executed a $100 million placement as the company looks to realise a further 400,000 ounces of annual gold production in the 2024 financial year (FY24).

The gold miner raised the cash through the placement of 48 million new ordinary shares dealt at $2.10 per share, representing a 13.9 per cent discount from Westgold’s closing share price on March 9.

Funds from the raise will uplift Westgold’s Murchison and Bryah operations in Western Australia, where the company is looking to boost gold production in the coming years.

The Bluebird underground expansion project at Murchison will see Westgold target a 50 per cent increase in annual gold production from the mine, equating to approximately 600,000 tonnes at 3 grams per tonne (g/t) gold.

Westgold’s Fender underground development project at Murchison will target 300,000 – 420,000 of new gold production at 2.8g/t gold.

Westgold will also advance its Tuckabianna and Day Dawn development projects within Murchison and Bryah, as the company looks to unlock new deposits within its portfolio.

“The scale of market support of this placement strongly endorses Westgold’s growth plans and speaks to the growing momentum and the evolution of our business,” Westgold executive director Wayne Bramwell said.

“Westgold will systematically deploy these funds to expand gold production in FY23 and FY24 from Bluebird, Fender and the Tuckabianna trend, underpinning the expansion of our processing hubs.

“Concurrently, and with a view to FY24 onwards, we will rapidly advance the strategic and iconic high-grade Great Fingall and Golden Crown mines.

“This placement heralds a new phase of corporate development at Westgold. Operationally we are sharply focused on cost management and profitability of the business at its current scale and can now launch the next stage of growth for our shareholders from a position of increasing strength.”

Westgold was trading at $2.13 at the time of writing, a 13 per cent drop on the day.

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