Westgold Resources Ltd. agreed to sell its Higginsville gold operations in Western Australia to RNC Minerals for A$25 million cash and A$25 million in shares.
The company will become a significant shareholder in RNC Minerals after the transaction, according to a March 26 release.
RNC will immediately pay A$4 million in shares as a nonrefundable deposit for a 40-day exclusive period to complete its due diligence and is planning for a settlement within a further 30 days.
Westgold said its core focus will remain on expanding gold output from its three operations in Western Australia's Murchison region.
RNC would combine its Beta Hunt gold operations with Higginsville to expand gold output.
Westgold said all employees are expected to retain their jobs and any accrued benefits through the process of changing ownership.