Adelong Gold has finalised a binding agreement with Great Divide Mining (GDM) to develop the Adelong Gold Project in New South Wales (NSW), Australia.
The partnership aims to achieve first gold production within 12 months, leveraging GDM’s expertise and resources.
If this milestone is not met, Adelong Gold retains the right to reclaim full ownership of the project.
Under the agreement, GDM will invest A$300,000 ($188,535) for an initial 15% stake in Adelong Gold’s subsidiary Challenger Gold Mines (CGM), after due diligence.
GDM will act as the project operator, managing site activities and overseeing plant refurbishment.
Upon achieving the first gold pour, GDM’s interest will increase to 51%, while Adelong Gold will maintain a 49% strategic interest.
Adelong Gold will have no funding obligations until gold production begins. Additionally, there will be further exploration and feasibility studies to expand gold resources within the project area.
This collaboration is expected to accelerate the pathway to gold production, delivering positive outcomes for shareholders.
Adelong Gold managing director Ian Holland said: “We are pleased to have secured this agreement with GDM, which provides a clear pathway towards production at Adelong. The agreement aligns with our strategy to unlock the value of the project while ensuring a pathway to retain control should key milestones not be met. We look forward to working closely with GDM to advance the project and deliver value to our shareholders.”
In May 2020, Adelong Gold took control of the Adelong gold field from Macquarie Gold and Challenger Mines under its then operating name, 3D Resources.
The project area covers 70km², which includes the old Adelong Gold Project in southern NSW, approximately 20km from Tumut and 80km from Gundagai.
The project now holds a JORC (2012) Resource of 188,000oz, with potential for expansion at depth and along strike.
The mine was in operation until recently, and Adelong Gold’s resources have increased by 45% since the acquisition.
