Alicanto Minerals (ASX: AQI) has confirmed it will acquire the Mt Henry project in Western Australia from Westgold Resources (ASX: WGX), giving it access to a large, near-surface gold system with substantial growth potential.
The project hosts a gold resource of 900,000 ounces across the Mt Henry, Selene, and North Scotia deposits located along a 16 kilometre corridor of the prolific Southern Kalgoorlie Terrane, and supported by extensive drilling, consistent mineralisation, and a substantial technical dataset.
Mineralisation is completely open along strike and down-dip of each deposit, with the potential for rapid resource growth and broader district-scale upside.
Mt Henry’s resource was initially reported inside pit shells at an assumed gold price of $2,169/oz; however, with the price now above $6,000/oz, Alicanto sees the potential for larger pit shells and the evaluation of broader development scenarios.
Cash-Plus-Scrip Transaction
Consideration for the Mt Henry acquisition will comprise an upfront payment of $15 million cash and the placement of approximately 357.1 million shares, plus $30m in deferred payments subject to the achievement of agreed milestones.
These include the completion of 20,000 metres of drilling, the confirmation of an inferred resource estimate, and the announcement of a final investment decision.
Alicanto will fund the cash payment through a concurrent two-tranche $28 million placement to institutional investors that will see the issue of 509.1 million shares priced at $0.055 each.
Proceeds will also cover a 50,000m multi-rig drill program focused on exploration and resource expansion, as well as exploration costs at Alicanto’s other projects including the Falun (copper) and Sala (silver) mines in Sweden.
On completion of the acquisition, Westgold will become a 19.9% shareholder in Alicanto, establishing strong long-term alignment as the project advances.
‘Company-Making Opportunity’
Alicanto interim executive chair Ray Shorrocks said the Mt Henry acquisition would place the company in a Tier 1 gold jurisdiction containing multiple long-life operations and multi-million-ounce deposits.
“This is an exceptional company-making opportunity that provides immediate scale, a high-quality near-surface resource, and a clear platform for rapid growth and development,” he said.
The company’s plans to unlock Mt Henry’s potential will commence with an aggressive 50,000m drilling campaign in the first quarter of 2026.
The work aims to update geological, structural, and mineralisation models, integrating Westgold’s historical dataset with modern interpretation methods.
It will also seek to expand mineral resources along the 16km corridor, targeting lateral and down-dip extensions across the main deposits, as well as test depth continuity and potential high-grade shoot continuity of the main deposits.
Alicanto is currently advancing drill permitting activities to allow for the start of drilling to start once the acquisition is settled.
