Milestone-Linked $30M Payments Add Risk to Alicanto’s Mt Henry Deal
Alicanto Minerals has agreed to acquire the Mt Henry Gold Project in Western Australia from Westgold Resources, gaining a 0.9 million ounce gold resource with significant expansion potential. The company is set to initiate a 50,000-metre drilling program funded by a $28 million placement, positioning itself for rapid growth in a Tier-1 gold jurisdiction.
- Acquisition of 100% Mt Henry Gold Project from Westgold for $15M cash plus shares and performance rights
- Project hosts 0.9Moz gold resource within a 16km mineralised corridor, open for expansion
- Immediate 50,000m multi-rig drilling campaign to extend resources and test new targets
- Westgold to become 19.9% shareholder in Alicanto post-completion
- $28M placement secured from institutional investors to fund acquisition and exploration
A Transformational Acquisition in Western Australia
Alicanto Minerals Limited (ASX – AQI) has announced a binding agreement to acquire the Mt Henry Gold Project from Westgold Resources Limited (ASX/TSX – WGX) for an upfront cash payment of $15 million, alongside the issuance of approximately 357 million shares and performance rights contingent on future milestones. This acquisition grants Alicanto 100% ownership of a substantial gold project located within the prolific Southern Kalgoorlie Terrane, a region known for its rich gold endowment exceeding 150 million ounces.
The Mt Henry project boasts a current Mineral Resource of approximately 0.9 million ounces of gold, spread across three deposits; Mt Henry, Selene, and North Scotia; aligned along a 16-kilometre mineralised corridor. Importantly, mineralisation remains open both along strike and at depth, suggesting considerable potential for resource growth beyond the existing estimate.
Strategic Growth and Immediate Exploration
Recognising the opportunity presented by the acquisition, Alicanto plans to commence an aggressive 50,000-metre multi-rig drilling program in early 2026. This campaign aims to expand the known mineralisation, test new targets along the extensive corridor, and update geological models with modern interpretation techniques. The drilling program is fully funded by a concurrent $28 million placement, which attracted strong support from institutional investors, including leading global precious metals funds.
With gold prices now significantly higher than the assumptions underpinning the current resource estimate, Alicanto sees clear upside in expanding pit shells and exploring broader development scenarios. Historic drilling results reveal substantial widths and grades, including impressive intercepts such as 18 metres at 16.4 grams per tonne and 64 metres at 3.9 grams per tonne, underscoring the scale and continuity of mineralisation.
Partnership and Leadership Enhancements
Westgold Resources will emerge as a 19.9% shareholder in Alicanto following completion of the acquisition and placement, aligning interests and providing a strong endorsement from a major ASX200 gold miner. This strategic partnership reflects confidence in both the quality of the Mt Henry project and Alicanto’s capability to advance it.
Supporting this growth trajectory, Alicanto has appointed Jeff Sansom as Chief Executive Officer, effective February 2026. Sansom brings extensive experience in Western Australian gold operations, complementing the company’s refreshed leadership team focused on delivering value from the Mt Henry project.
Capital Structure and Share Consolidation
Following the acquisition and placement, Alicanto’s pro forma cash position will be approximately $17.3 million, providing a robust financial platform for exploration and development activities. The company also intends to undertake a 12 – 1 share consolidation to streamline its capital structure and enhance share price dynamics, subject to shareholder approval at an upcoming Extraordinary General Meeting scheduled for late January 2026.
The acquisition is subject to customary conditions precedent, including shareholder approvals and native title consents from the Ngadju people, the traditional owners of the land. Alicanto is progressing these approvals alongside drill permitting to ensure a swift transition to active exploration.
Positioning for a New Phase of Growth
Located within a Tier-1 gold jurisdiction with established infrastructure and a rich history of mining, the Mt Henry Gold Project offers Alicanto a compelling platform for rapid growth. The combination of a significant resource base, extensive historical data, and immediate drilling plans positions the company to unlock substantial value in the near term.
As Alicanto embarks on this transformative chapter, market participants will be watching closely for drilling results that could redefine the scale and economics of the Mt Henry project, potentially elevating Alicanto’s profile within the competitive Western Australian gold sector.
Bottom Line?
Alicanto’s acquisition and aggressive exploration program set the stage for a pivotal growth phase, but execution risks and milestone hurdles remain key watchpoints.
Questions in the middle?
- How will initial drilling results influence Alicanto’s resource upgrade and development timeline?
- What are the specific performance milestones tied to the $30 million contingent consideration?
- How will Westgold’s strategic involvement shape Alicanto’s operational and capital decisions going forward?
