SINGAPORE (July 6): Golden Energy and Resources (GEAR) announced on Monday that it has disposed 4 million ordinary shares in Australian-listed Westgold Resources for A$9 million ($8.7 million).

The disposal was completed via an on-market sale on Friday (July 3).

The unaudited book value and net tangible asset (NTA) value of the shares are estimated to be around A$4.5 million and A$4.4 million respectively as at Dec 31, 2019.

The market value of the shares is estimated to be around A$8.9 million as at July 2.

Following the transaction, GEAR now holds some 1.59% of shares in Westgold, from 2.54%.

Based on Westgold’s unaudited consolidated financial statements for the 12-month period ended Dec 31, 2019, the net profit attributable to the Specified Shares is approximately A$0.4 million.

GEAR will record a gain on disposal of the Specified Shares of approximately A$1.5 million. This will be partly offset by a foreign exchange loss due to movements in the exchange rate of A$/US$ between the date of the initial investment and the date of the disposal, thereby resulting in a net gain of approximately US$270,000 ($376,359).

Westgold is an Australian gold producer that mainly explores, develops, and operates gold mines primarily in Western Australia. The Westgold Group currently owns three operating gold projects in Meekatharra, Cue and Fortnum.

Shares in Golden Energy and Resources closed flat at 16.4 cents on Friday.