Westgold’s Shares Uplifted On ASX After Accepting The Superior Offer From Cobalt 27 For Lithium Royalty Sale

  • Dec 31, 2018 AEDT
  • Team Kalkine
Westgold’s Shares Uplifted On ASX After Accepting The Superior Offer From Cobalt 27 For Lithium Royalty Sale

Australian Gold Producer, Westgold Resources Ltd (ASX: WGX) made an announcement on 31 December 2018 stating that it is accepting a superior offer from Cobalt 27 Capital Corp for Mt Marion Lithium Royalty Sale. Following this news, the share price of WGX increased by 2.312 percent as on 31 December 2018.

Earlier on 7 December 2018, the company had announced regarding entering into a conditional letter of intent to divest its non-core lithium royalties at Mt Marion and Buldania to SilverStream SEZC for a total consideration of AUD$15 million. However, after this announcement, Westgold received an offer from Cobalt 27 Capital Corp to acquire the Mt Marion lithium royalty, for a total consideration of AUD$250,000 and 200 metric tonnes of physical cobalt metal in a warranted LME warehouse.

Westgold has decided to accept the Cobalt 27’s offer as it believes that it is a superior offer with current cobalt metal prices at USD$54,500 per tonne. The company has also agreed to pay the minor termination costs associated with the conditional SilverStream SEZC agreement.  As per the announcement, the agreement with Cobalt 27 remains subject to Cobalt 27 completing due diligence and final approval of their board.

Recently, Westgold Resources also announced that it is going to buy Andy Well and Gnaweeda Gold Projects to further expand its Murchison footprint. The company has already signed a binding term sheet with Doray Minerals Ltd to purchase the projects for $15 million in cash and shares which includes $9 million on completion.

At the Annual General Meeting (AGM) of the company which was held on 28 November 2018, the company informed the shareholders that FY 2018 was a busy year for the company. During the financial year 2018, the company Refurbished and commissioned 2 Process Plants – Fortnum & Tuckabianna. In FY 2018, the company was having six underground mines which were in an operating state. During FY 2018, the Company also acquired Australian Contract Mining (ACM) in an unplanned and reactive move to protect Westgold from the adverse reaction to ACM’s fiscal failure. The company invested $51 million in acquiring ACM, and the company re-invested a further $25.5 million in necessary capital to re-invigorate the business and pushed through ACM’s $21 million loss through its operating accounts during the year.

In the September quarter, the company reported gold output of 64,037 ounces. Further, the Company’s gold operations generated EBITDA (unaudited) of $11.9 million and reported cash costs (C1) of AUD$1,406/oz. As at 30 September 2018, the company was having cash and bullion of A$45.2 million.

In the last six months, the share price of the company decreased by $52.86 percent as on 28 December 2018. WGX’s shares traded at $0.885 with a market capitalization of circa $336.58 million as on 31 December 2018 (AEST 2:22 PM).


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s).Kalkinemedia.com does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK