Great Boulder Resources Ltd (ASX:GBR) is divesting the non-core Whiteheads Gold Project 40 kilometres north of Kalgoorlie in Western Australia to prioritise time and capital in progressing the flagship Side Well Gold Project in the state’s Mid-West.
The company has entered a tenement purchase agreement with private gold-focused exploration and development company Great Western Gold Pty Ltd (GWG) involving the acquisition of 100% of the company’s legal and/or beneficial interest in 13 granted exploration permits making up the Whiteheads Project.
GWG plans to list
GWG intends to complete an initial public offering (IPO) on the Australian Securities Exchange (ASX) in the first half of 2025 with Great Boulder to retain equity upside to the project as part of the agreement.
Great Boulder’s managing director Andrew Paterson said: “This is a great outcome for Great Boulder shareholders.
"The prospectivity and potential of Whiteheads has been overlooked given the significant exploration success at Side Well, resulting in the prioritisation of funds and management time, and we’re pleased to be working with Great Western Gold to unlock value here.”
Consideration
Great Boulder will receive the following consideration for the sale of Whiteheads:
- Exclusivity fee - $50,000 cash payment (paid) for exclusivity for six months with an option to extend for a further four months provided the IPO (or alternative transaction such as an RTO) is sufficiently advanced at the end of the initial exclusivity period;
- Cash payment - a one-off cash payment at listing, less the exclusivity fee, as reimbursement for reasonable cash payments incurred with respect to exploration and expenditure commitment at Whiteheads during the period commencing on the execution fate (today) and completion date. Estimated costs of ~$250,000 to be incurred.
- Equity - Upfront and deferred equity consideration in GWG totalling $1.2 million (assuming a $0.20 per share listing price).
Sharpening Side Well focus
"In addition to maximising the value for Great Boulder shareholders from Whiteheads, this transaction will further sharpen our focus on Side Well, where we are progressing a fully funded +50,000-metre drill program to deliver material resource growth and new discoveries,” Paterson said.
"As we exit the project I’d like to thank our joint venture partner Scott Wilson for his support. Whiteheads was an important stepping-stone for Great Boulder back in 2019 and Scott has been a great supporter of the company ever since.”
Completion of the agreement is subject to the satisfaction (or permitted waiver), on or before June 30, 2025, of a number of conditions precedent customary for an agreement of this nature.