Great Divide Mining Ltd (ASX:GDM) Completes Adelong Venture Definitive Agreement
Great Divide Mining Ltd (ASX:GDM) is pleased to announce that it today completed Definitive Agreements with Adelong Gold Ltd (ASX:ADG) for the Farm-in at its' Challenger Gold Mine in Adelong, NSW.
Key Points:
- GDM will pay $300,000 to Challenger Mines Pty Ltd, (Challenger) owner of the Challenger Gold Mine and wholly owned subsidiary of ADG, for a 15% interest in Challenger. These funds are to be deployed towards maintenance, refurbishment and restart of the Challenger gold processing plant.
- GDM becomes the operator of the Challenger Gold Mine and will rapidly move to complete the restart of processing operations.
- GDM will free-carry ADG to first gold pour at the Challenger Gold Mine, at which point, GDM will increase its holding to 51% of Challenger.
Commenting on the completion of the Farm-in, CEO of GDM, Justin Haines, said:
"Finalisation of the Definitive Agreements puts GDM squarely onto the path to produce first gold from the Challenger Gold Mine. Our aim is to produce first gold as rapidly as possible then expand the operation to primary mining and increase the plant capacity. The planning for this phase will advance once the initial production is confirmed."
GDM announced on 11 November 2024 that it had signed a binding term sheet with ADG and its wholly owned subsidiary Challenger to recommence operation of the historic Challenger Gold Mine (Adelong Venture). This agreement, and the change in the nature of GDM's business from explorer to that of miner and processor, was approved by shareholders at an extraordinary general meeting held on 7th January 2025.
GDM completed due diligence on Challenger on 23 January 2025. The parties have now finalised binding agreements for GDM to acquire an initial stake of 15% in Challenger and become operator of the Challenger Gold Mine. GDM's focus will be on rapidly moving the Challenger Gold Mine back on to a production footing.
GDM thanks both its shareholders for their continuing support, and ADG for their co-operation in reaching this significant milestone.
Adelong Venture - Overview
The Adelong Venture represents a significantly accelerated path to revenue generation for GDM, with existing leases and approvals in place and a processing plant ready to reconfigure, restart and optimise.
For further information on the Challenger Gold Mine please see the following Adelong Gold Limited (ASX:ADG) announcements:
- 11 October 2024 Annual Resource Statement; and
- 31 October 2022 Updated scoping Study - Substantial Improvement Shown.
As at February 2025, the assets of Challenger include:
- 17 Mining Leases and an Exploration License over approximately 70km2 covering the majority of the Adelong Goldfield;
- Owned or leased land on which the processing plant, Challenger Gold Mine and Currajong deposit are located;
- A development consent to develop an open cut and underground mine at the Challenger site, and to operate a gold processing plant;
- A license issued by the EPA to operate the Challenger Gold Mine; and
- A Water Extractive License.
Proposed Development and Operations
GDM intends to move quickly to restart mining and processing at the Challenger Gold Mine in order to generate ongoing cashflows for the Adelong Venture.
Testing and commissioning works are expected to start at the Challenger processing plant during Q3FY25.
As at the date of this announcement, the Challenger processing plant needs minor reconfiguration works and recommissioning to achieve first production of gold. After first production of gold, the plant is expected to need further reconfiguration and expansion to be suitable for commercial production.
Material Terms of Proposed Transactions
The material terms of the Joint Venture Agreement are detailed in link* below:
https://abnnewswire.net/lnk/W6P109GT
Justin Haines Chief Executive Officer e: justin.haines@greatdividemining.com.au
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