Westgold Resources Ltd (ASX:WGX, OTC:WGXRF) will spin out its non-core Reedy and Comet gold assets into a new ASX-listed vehicle, Valiant Gold Ltd, via a demerger and concurrent IPO planned for Q3 FY26.
The transaction is designed to crystallise value from assets outside Westgold’s near-term production plans while preserving upside through a significant retained equity position.
“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," Wayne Bramwell, managing director and CEO of Westgold said.
"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.”
Demerger Assets proximity to Westgold's processing hubs.
IPO to raise up to $75 million at $0.25 per share
Valiant will seek between $65 million and $75 million in its initial public offering at an issue price of $0.25 per share. The structure of the raising includes:
- a $20 million priority offer to eligible Westgold shareholders, and
- $45–55 million through an institutional and broker firm offer.
On listing, Valiant is expected to debut with a market capitalisation of $125–135 million. Westgold will hold approximately 44–48% of the new company depending on final subscription levels, enabling it to retain exposure to future development and exploration success.
Spin-out transfers Reedy and Comet projects into new standalone gold company
The demerger will see Valiant acquire the Reedy and Comet projects — a combined 1.2-million-ounce resource base across historic underground mines and multiple open-pit opportunities. Both assets offer near-term restart potential and exploration upside but are not scheduled to contribute to Westgold’s current three-year outlook.
Valiant’s mandate is to focus capital and management attention on these smaller but prospective Murchison district assets, which Westgold says are better advanced by a standalone growth-focused explorer–developer.
Ore Purchase Agreement enables fast-track production
To provide a rapid pathway to cash flow, Westgold and Valiant will enter into an Ore Purchase Agreement (OPA) under which Valiant’s ore can be processed through Westgold’s existing Cue and Meekatharra hubs.
This structure mirrors the model used successfully with New Murchison Gold, enabling a transition from explorer to producer with low upfront capital requirements.
Westgold will also provide Valiant with an unsecured, interest-free loan of up to $3 million to fund early work programs ahead of the IPO. The facility will be repaid upon completion of the listing.
Board and management in place
Valiant’s proposed board includes Derek La Ferla as non-executive chairman, Brendan Tritton as managing director, and Anthony Chamberlain and Simon Rigby as non-executive directors.
Prospectus lodgement is targeted for mid-February 2026, with the IPO expected to close and shares to be allotted in late March 2026.