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Westgold Resources secures $100 million credit facility from ING and Societe Generale

Westgold Resources (ASX:WGX) has raised eyebrows in the mid-cap mining sector with the announcement of a $100 million revolving credit facility. This news comes at a time when the company boasts $217 million in cash and liquid assets at the end of the first quarter.

Westgold disclosed on Wednesday morning that the credit facility is provided by the Australian arms of European banking giants ING and Societe Generale.

The company stated that the revolving credit can be used for general corporate purposes and has a three-year term. Importantly, Westgold is not required to enter into mandatory hedging deals to secure the credit. This means that the company remains free of fixed forward hedges and can fully leverage its gold sales to the spot price.

Westgold’s Managing Director, Wayne Bramwell, expressed confidence in the company’s trajectory and highlighted the support from ING Bank and Societe Generale as validation of its growth plans. He emphasized Westgold’s strong financial position with $217 million in cash and bullion at the end of Q1, FY24, and the additional firepower of $100 million from the new corporate facility to seize emerging opportunities.

In its September quarterly report, Westgold celebrated its continued cash build, a debt-free status, and full leverage to the gold price, positioning the company to meet its FY24 objectives.

With ample cash on hand and no debt, Westgold is poised to explore potential acquisitions after a previous bid for Musgrave Minerals was eclipsed by a higher offer from Ramelius.

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