Adelong Gold (ASX:ADG) has entered a binding transaction to sell its 49% stake in privately held Challenger Mines to Great Divide Mining (ASX:GDM).
The agreement includes the sale of Adelong’s stake in the Challenger Gold Project, located in Adelong, New South Wales, which will terminate the joint venture.
The company will sell its 10 million shares in Challenger Mines in exchange for 10 million shares in Great Divide upon completion, expected in late January 2026.
Adelong will pay $27,288 to the joint venture upon completion for tax obligations. The company has paid $107,000 of joint venture expenses by the end of October 2025.
The company will retain $455,000 from a prior non-core property sale, as well as a 1% net smelter return royalty. The royalty will be capped at 125,000 ounces of gold produced.
Adelong Managing Director Ian Holland says this transaction offers the company a “clean exit” from its joint venture while retaining material exposure.
“The agreed-upon structure improves our balance sheet, removes future funding risk, and allows us to direct capital to the Lauriston and Apollo gold projects,” Holland says.
“We also welcome the constructive engagement from Great Divide Mining’s team and look forward to a cooperative working relationship as they advance the Challenger Gold Project.”
Write to Maddison Elliott at Mining.com.au
Images: Adelong Gold
