Great Divide Mining is set to transition from gold explorer to producer after signing a binding farm-in agreement with Adelong Gold and its wholly owned subsidiary Challenger Mines to recommence operations at the Adelong gold mine.
Great Divide Mining (GDM) has been appointed manager to operate the Adelong gold mine – now known as the Adelong venture – and its processing plant and associated equipment.
With existing mining leases and approvals in place, GDM intends to accelerate the restart of Adelong’s mine and processing plant.
As per the binding farm-in agreement, GDM will initially take a 15 per cent holding in Challenger Mines for $300,000 spent on exploration. It will then increase its ownership to 51 per cent once gold production has commenced at the processing plant.
Any additional funding GDM requires to achieve first pour of gold and acquire further interest in Challenger Mines may be funded by GDM’s revenue or an equity capital raise.
“GDM was formed to rapidly evolve into a cash-flow mining business,” GDM chief executive officer Justin Haines said. “This agreement sets us squarely on the path to producing our first gold in the near-term.
“Working within the Adelong Venture we aim to commence restarting of the existing plant and development of the gold in mine plan this year, then organically expanding the resources and operation. This is transformational for GDM and its shareholders.”
Completion of the transaction is subject to several conditions, including a 90-day due diligence period and GDM shareholder approval.
While the Adelong processing plant is yet to be recommissioned, GDM expects the testing and commissioning works to start at the plant during the third quarter of the 2024–25 financial year.
Situated within a historical goldfield that has produced over 800,000 ounces of gold, the Adelong venture is located in New South Wales.
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