Westgold Resources has announced the successful divestment of its Lakewood Mill processing facility, located near Kalgoorlie, Australia, to Black Cat Syndicate for a total amount of A$85 million (approximately $53.2 million). This significant deal, which was first revealed in February 2025, provides Black Cat with complete ownership of the facility, with plans to rebrand it as Black Cat (Lakewood). The terms of the acquisition include taking on the facility’s infrastructure, licenses, permits, and existing contracts, further solidifying Black Cat's position in the mining sector. The financial breakdown of the deal consists of A$70 million in cash, distributed in installments over a nine-month period, coupled with A$15 million worth of shares in Black Cat, priced at A$0.76 per share. These shares will be held in escrow for one year following their issuance. So far, as of March 31, 2025, Westgold has secured an initial payment of A$25 million. The subsequent payments are structured to deliver A$20 million by June 30, 2025, and the remaining A$25 million is expected to be paid on November 30, 2025. Additionally, as part of the transaction, Black Cat will assume approximately A$8 million in rehabilitation liabilities associated with the facility. A noteworthy aspect of this agreement is that Westgold retains optionality and priority access to process up to 200,000 tonnes per annum (tpa) at Lakewood through a toll-treating arrangement for the next two years. This strategic move allows Westgold to continue benefiting from the facility while focusing on its core operations. According to Black Cat, this acquisition will expedite gold production by around 15 months, increasing the processing capacity significantly from 800,000 tpa to 1.2 million tpa. This substantial uptick in capacity marks a pivotal advance in Black Cat's operational capabilities. Westgold acquired Lakewood in 2022 when it was still under the management of Karora Resources. Since then, the facility has undergone extensive upgrades, including the installation of a more powerful 1,850 kW motor in the primary mill, the addition of two carbon-in-leach tanks, the construction of a new tailings storage facility, and the refurbishment of a secondary mill. These enhancements are expected to further bolster processing efficiency and output once fully operational. Wayne Bramwell, managing director and CEO of Westgold, expressed his enthusiasm about the divestment, stating, "Westgold is an unhedged gold producer with six mines and four operational mills across two of Western Australia’s most prolific goldfields. Our corporate strategy aims to leverage our portfolio by focusing on larger, lower-cost mines and mills to unlock value for our shareholders. The divestiture of Lakewood aligns with this strategy, reduces our cost base, and simplifies our Southern Goldfields operations." He further explained that all ore from Beta Hunt will now be directed to the Higginsville operation, allowing for prioritization of higher-grade ore processing through this mill. This strategic move is expected to benefit from the lower operational costs associated with the larger 1.6 million tpa mill. Furthermore, a study exploring the potential expansion of the Higginsville Mill is nearing completion, with findings expected to be reported in April. The sale of the Lakewood facility is a reflective example of the dynamic nature of the mining industry, where companies continually adapt their strategies to enhance productivity and shareholder value. As Westgold focuses on consolidating its resources and maximizing efficiency, Black Cat Syndicate positions itself for accelerated growth in the competitive gold market.