Westgold unveils spin-out of non-core Reedy and Comet gold assets

The Westgold Resources Ltd (ASX: WGX) share price is in focus after the company announced plans to spin out its non-core Reedy and Comet gold projects into a new standalone vehicle, Valiant Gold Limited, with an associated IPO in Q3 FY26. Key highlights include a proposed $65–$75 million Valiant IPO and Westgold’s retention of a significant equity stake in the new entity.

What did Westgold Resources report?

• Westgold to demerge its non-core Reedy and Comet gold projects into Valiant Gold, a new ASX-listed company
• Valiant Gold to acquire projects hosting a combined Mineral Resource of 15.6 Mt @ 2.4 g/t Au for 1.2 Moz
• IPO expected to raise $65–$75 million with a $20 million Priority Offer for eligible Westgold shareholders
• Ore Purchase Agreement to be entered into between Valiant and Westgold, fast-tracking cash flow from mining
• Westgold to retain 44%–48% stake in Valiant post-IPO, preserving exposure to exploration and production upside

What else do investors need to know?

The move will allow Westgold to sharpen its strategy by focusing capital and resources on expanding core, higher-grade operations in the Murchison and Southern Goldfields regions. The demerger is structured so Valiant will have immediate access to Westgold’s processing plants under a commercial Ore Purchase Agreement, providing a clear pathway for early production.

Valiant’s establishment brings an experienced board and management team, including Westgold’s own Chief Growth Officer Simon Rigby as a non-executive director. The new company’s IPO is intended to foster accelerated drilling, mine restarts, and exploration across the demerged assets.

What did Westgold Resources management say?

Managing Director & CEO Wayne Bramwell said:

Westgold is focused on expansion of our larger, core operating assets. By establishing Valiant, we create an independent, well-funded gold company that can bring forward value from smaller assets such as the Comet and South Emu-Triton underground mines and unlock the exploration potential across the Reedy and Comet packages. Valiant will have a fast-track to cashflow with an Ore Purchase Agreement (OPA) to be entered into with Westgold. This collaborative, capital efficient model is proven, as demonstrated by Westgold’s investment and OPA with New Murchison Gold (ASX: NMG). This model saw NMG transition from explorer to producer, with gold production from NMG’s Crown Prince deposit now delivering high grade oxide ore to Westgold’s Meekatharra processing hub. Valiant can replicate this success. With several small underground mines in care and maintenance, a range of open pit opportunities, and exploration upside, the Valiant team has multiple near-term restart and growth options to deliver near term cashflow.

What’s next for Westgold Resources?

The demerger and IPO are scheduled for completion by late March 2026, subject to regulatory conditions and ASX approval. Eligible Westgold shareholders will have access to a $20 million Priority Offer in the IPO. Westgold will continue to support Valiant by providing an unsecured, interest-free loan to kickstart project activities ahead of listing.

Looking ahead, Westgold intends to sharpen its focus on growth in Western Australia’s prolific gold regions, while benefiting from any upside Valiant delivers through its equity stake and Ore Purchase Agreement.

Westgold Resources share price snapshot

Over the past 12 months, Westgold Resources shares have risen 103%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has increased 5% over the same period.

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The post Westgold unveils spin-out of non-core Reedy and Comet gold assets appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.