WGR Confirms Binding Toll Milling Agreement for Gold Duke Project
Western Gold Resources has confirmed a binding toll milling agreement with Wiluna Mining Corporation, explaining recent unusual trading activity in its shares.
- Binding toll milling agreement executed with Wiluna Mining Corporation
- Agreement relates to the Gold Duke Project near Wiluna
- Company relied on Listing Rule 3.1A prior to announcement
- Confirmed compliance with ASX continuous disclosure rules
- Market responded with significant price and volume movements
Background to the Price Query
Western Gold Resources Limited (ASX – WGR) recently faced a sharp increase in its share price and trading volume, prompting the ASX to issue a formal price query. The exchange sought clarity on whether the company was aware of any undisclosed information that could explain the unusual market activity. This is a standard regulatory measure designed to ensure transparency and maintain investor confidence.
The Toll Milling Agreement Unveiled
In response, Western Gold Resources confirmed that it had been in advanced discussions with Wiluna Mining Corporation Limited, which is currently subject to a Deed of Company Arrangement. These discussions culminated in the execution of a binding toll milling agreement for the Gold Duke Project, located near Wiluna, shortly after market close on 13 June 2025.
The toll milling arrangement allows Western Gold to process ore through Wiluna's facilities, a strategic move that could enhance operational efficiency and potentially accelerate production timelines. While the company did not disclose detailed financial terms or operational forecasts, the agreement is material enough to have influenced recent trading patterns.
Regulatory Compliance and Market Impact
Western Gold Resources acknowledged reliance on Listing Rule 3.1A prior to the announcement, which permits companies to withhold information if it is confidential and its release would likely prejudice the company. However, once the agreement was finalized, the company promptly disclosed the information, reaffirming its commitment to continuous disclosure obligations under ASX Listing Rule 3.1.
This transparency likely helped to stabilize market sentiment following the initial price volatility. The company also confirmed that its board authorized the disclosure, underscoring governance standards in handling sensitive market information.
Looking Ahead
While the toll milling deal represents a significant development for Western Gold Resources, investors and analysts will be keen to understand the operational and financial implications in greater detail. The agreement could signal a step forward in unlocking value from the Gold Duke Project, but the absence of specific guidance leaves room for cautious optimism.
Bottom Line?
Western Gold’s new toll milling deal clarifies recent market moves but leaves key operational impacts to be revealed.
Questions in the middle?
- What are the expected financial benefits and costs associated with the toll milling agreement?
- How will this arrangement affect production timelines and output at the Gold Duke Project?
- Could this deal lead to further strategic partnerships or changes in Western Gold’s operational plans?
