Westgold Resources (ASX:WGX) entered into a binding asset sale agreement with Alicanto Minerals' (ASX:AQI) unit for the sale of the Mt Henry-Selene gold project in Western Australia for AU$64.6 million, according to a Wednesday filing with the Australian bourse.

Alicanto's unit will pay AU$15 million in cash and AU$19.6 million via the issue of Alicanto shares, the filing said.

The company will also receive performance rights valued at AU$30 million, the filing added.

Under the deal, Westgold will earn a 19.9% stake in Alicanto, the company said.

The deal is conditional on receiving shareholder and third-party approval, a capital raise of at least AU$25 million, and the release of existing encumbrances over the asset, the company added.

It is expected to be completed within five days after meeting the conditions.