Alicanto Minerals Ltd (ASX:AQI) has agreed to acquire the Mt Henry Gold Project in Western Australia from Westgold Resources in a transaction that delivers immediate scale, a substantial near-surface resource base and clear growth optionality at current gold prices.
The acquisition secures 100% ownership of the Mt Henry Gold Project, which hosts a JORC 2012 Mineral Resource of 915,000oz of gold and sits within a 16 kilometre mineralised corridor in the prolific Southern Kalgoorlie Terrane.
JORC 2012 Mineral Resource Estimate for Mt Henry Gold Project, Western Australia.
Mineralisation remains open along strike and at depth, with extensive historic drilling highlighting strong potential for rapid resource growth.
The deal is supported by a $28 million capital raising and will see Westgold emerge as a 19.9% shareholder in Alicanto, providing strategic alignment as the project advances.
“The Mt Henry acquisition is an exceptional company-making opportunity for Alicanto. It provides immediate scale, a high-quality, near-surface Resource and a clear platform for rapid growth and development," Alicanto interim executive chair, Ray Shorrocks, said.
“The 0.9Moz resource and pit shells were calculated when the gold price was one-quarter of its current level and the historic drilling data shows most holes ended in mineralisation.
“Given the wide-open nature of the mineralisation and the huge increase in the gold price, the upside at Mt Henry is immense on every level.
“We will waste no time in unlocking this potential, with a 50,000m drilling program already scheduled to start in the first quarter of 2026.
“We are pleased to welcome Westgold as a 19.9% shareholder from completion of the Acquisition. This commitment reflects their confidence in the quality of the Mt Henry Gold Project and in Alicanto’s strategy to build a meaningful Western Australian gold business.”
Transaction structure and consideration
Under the binding agreement, Alicanto will pay Westgold $15 million in upfront cash and issue approximately 357.1 million shares, equivalent to a 19.9% equity stake in the company following completion of the acquisition and placement.
In addition, up to $30 million in contingent consideration is payable through performance-based milestones, structured as performance rights that vest over time. These milestones include completion of 20,000m of drilling, delivery of a minimum 2Moz mineral resource estimate, and a positive final investment decision to proceed with development.
Alicanto retains the option to settle milestone payments in either cash or shares, depending on timing and achievement conditions. Completion of the transaction is subject to standard regulatory and shareholder approvals, with settlement targeted for early February 2026.
Capital raising underpins growth strategy
Concurrent with the acquisition, Alicanto has secured firm commitments to raise $28 million through a two-tranche placement priced at $0.055 per share.
The placement attracted strong demand from institutional investors, including global precious metals funds, and will see board members, management and consultants contribute approximately $2.4 million. Proceeds will fund the upfront acquisition payment and an accelerated exploration and resource growth program at Mt Henry.
Following completion of the acquisition and placement, Alicanto is expected to hold pro forma cash of approximately $17.3 million, positioning the company to move quickly into large-scale drilling.
Mt Henry Gold Project: scale and location
The Mt Henry Gold Project is located approximately 210km south of Kalgoorlie within the Norseman–Kalgoorlie greenstone belt, one of Australia’s most prolific gold provinces. The broader belt hosts more than 150Moz of gold endowment in the southern sector alone and supports multiple long-life operations.
Location of the Mt Henry Gold Project, located in Western Australia; 210km south of Kalgoorlie hosted in the Norseman-Wiluna Greenstone Belt. The Norseman-Wiluna Belt is host to >270Moz and there are fourteen +1Moz deposits in the immediate vicinity of the Project.
The project comprises three defined deposits — Mt Henry, Selene and North Scotia — distributed along a 16km banded iron formation (BIF) horizon. Existing resources are largely shallow and were last mined in 2019, with the current mineral resource estimate constrained by pit shells generated at a gold price of around $2,160/oz.
Plan of Mt Henry tenements and deposits.
Prior drilling returned substantial widths and grades from unmined areas highlighting the scale and continuity of mineralisation, results include:
- 18.0m @ 16.4g/t gold from 14m (hole MHRD0121)
- 19.0m @ 9.0g/t gold from 29m (hole NMC005)
- 64.0m @ 3.9g/t gold from 65m (hole 5HENC068)
- 39.0m @ 5.2g/t gold from 100m (hole NHC122)
- 18.0m @ 9.8g/t gold from 1m (including 5m @ 33.1g/t from 8m) (hole NSRD0004)
Mineralisation trends for 16km with only shallow (typically <50m) drilling previously completed on broad centres, with numerous significant intersections outside of the resources to follow up including:
- 10.0m @ 88.2g/t gold from 5m (including 4m @ 208.8g/t gold from 4m) (hole 84IPP13)
- 13.0m @ 13.3g/t gold from 5m (including 3m @ 41.8g/t gold from 9m) (hole 84IPP26)
- 2.0m @ 46.3g/t gold from 6m (hole NBC043)
- 12.0m @ 6.1g/t gold from 17m (hole NTC003)
With the Australian dollar gold price now exceeding $6,000/oz, Alicanto sees clear scope for expanded pit designs and alternative development scenarios.
Resource base and key project highlights
The Mt Henry Gold Project hosts a total Mineral Resource of 24.5Mt at 1.2g/t gold for 915,000oz, classified across measured, indicated and inferred categories.
Mineralisation is near surface, laterally extensive and remains open along strike and down dip across all three deposits. Historic drilling shows many holes ended in mineralisation, underscoring the potential to materially expand the resource base with modern, systematic drilling.
Previous drilling has returned wide, high-grade intersections from both within and outside current resource envelopes, including multi-metre intervals at double-digit gram grades. Notably, large sections of the 16km corridor have only been shallowly tested, typically to less than 50m depth.
Growth optionality across multiple deposits
At the Mt Henry deposit, mineralisation extends over approximately 2km of strike and is typically 6m to 10m wide, with unmined intersections recorded beneath the existing pit and along strike.
The Selene deposit represents the most significant open-pit growth opportunity within the project. Mineralisation extends for approximately 1.3km along strike and to depths of around 130m, with zones thickening locally to more than 35m. Selene remains open in multiple directions and is expected to be a key focus of early drilling.
North Scotia differs in style, hosting higher-grade, vein- and shear-hosted mineralisation outside the main BIF horizon. Limited drilling to date has confirmed the presence of high-grade shoots, with strong potential for down-plunge extensions.
Between the defined deposits, numerous walk-up drill targets remain untested despite historically returning high-grade intercepts, reinforcing the district-scale exploration upside.
Immediate drilling program planned
Alicanto plans to commence an aggressive 50,000m multi-rig drilling program immediately following completion of the acquisition. Drilling will target extensions to existing resources, depth continuity beneath known deposits and new discoveries along the broader 16km mineralised trend.
The company will integrate Westgold’s extensive technical dataset with updated geological and structural models to guide drilling and accelerate resource growth.
Strategic alignment with Westgold
Westgold’s decision to retain a 19.9% equity position provides strong validation of the project’s quality and future potential. The major gold producer will also have the right to appoint a non-executive director while its shareholding remains above 10%.
The partnership reflects confidence in both the Mt Henry asset and the company’s strategy to build a meaningful Western Australian gold business.
With funding secured, a large resource base in hand and drilling ready to commence, Alicanto is positioning Mt Henry as a cornerstone asset with near-term growth and longer-term development optionality.