Musgrave buys Silver Lake's Cue stake

Westgold Resources will no longer acquire Silver Lake Resources’ stake in the Cue operation after joint venture partner Musgrave Minerals exercised its pre-emptive right to buy the interest.

Musgrave will pay $1.5 million in cash to acquire Silver Lake’s 40 per cent stake in the Cue joint venture, giving the Perth explorer full ownership of the Break of Day and Lena gold deposits.

“Musgrave sees considerable value in the opportunity to acquire Silver Lake’s interest and move to 100 per cent ownership of the resources,” Musgrave managing director Robert Waugh said.

“Drilling is set to resume at Break of Day in early August to extend the high grade gold mineralisation outlined to date.”

In a statement, Westgold – the listed spin-out company of Metals X – said while its planned acquisition of the Cue interest wouldn’t proceed, the purchase of Silver Lake’s Tuckabianna gold processing facility for $6 million in cash and 1.25 million shares had been completed.

Westgold shares were 4.9 per cent lower to $1.55 each at 10:15am, while Silver Lake shares were 2.2 per cent higher to 45.5 cents each.

Musgrave shares were unchanged at 8.1 cents each.