Great Divide Mining (ASX:GDM) has completed due diligence work on the Adelong Gold Project in New South Wales.
In November 2024, the company signed a binding farm-in agreement with Adelong Gold (ASX:ADG) to restart operations at the historical Adelong Gold Mine.
Great Divide will now move to finalise binding agreements which upon execution will enable the company to acquire a 15% holding in Adelong’s wholly owned subsidiary Challenger Mines.
Once completed, Great Divide will become operator of Challenger Mines.
Great Divide, which has a market capitalisation of $12.46 million, will focus on rapidly moving the gold mine back into production.
After achieving first gold production within 12 months, Great Divide will secure an additional 36% interest in the subsidiary, which will bring its total ownership to 51%.
Adelong Gold Managing Director Ian Holland says Great Divide’s hands-on approach and ability to address technical and operational aspects have been remarkable.
“This milestone not only underscores their capabilities but also strengthens our confidence in the partnership,” Holland says.
“Together, we are well-positioned to unlock the full potential of the Adelong Gold Project and recommence production within 12 months.”
In May 2020, Adelong took control of the Adelong Goldfield, covering 70km2, which comprises the past producing mine. The project carries 188,000 ounces of gold resource and demonstrates potential to expand at depth and along strike.
Adelong Gold is a mineral explorer focused on gold and its lithium tenement packages in the lithium valley of Minas Gerais and in the Paraiba Province in Brazil.
Great Divide Mining is a diversified mineral explorer and developer focused on its projects in Queensland considered prospective for gold, antimony, and critical minerals.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Divide Mining
