Great Divide Mining (ASX:GDM) is moving into production after signing a binding farm-in agreement to restart operations at the historical Adelong Gold Mine in New South Wales.
Under the agreement with Adelong Gold (ASX:ADG) and its wholly owned subsidiary Challenger Mines, Great Divide has been appointed manager to operate the venture.
Testing and commissioning works are expected to start at the Adelong process plant during Q3 FY25.
The Adelong venture comprises the Adelong Mine, processing plant and associated equipment with an historical goldfield that has produced over 800,000 ounces of gold.
Great Divide will initially take a 15% stake in Challenger Mines for $300,000 spent on exploration. The company will increase its ownership to 51% once gold production has begun from the mine’s process plant.
Any additional funding required by the company to achieve the first gold pour and acquire the further interest in Challenger Mines may be funded by Great Divide’s revenue or by way of a capital raising.
CEO Justin Haines says the company was formed to rapidly evolve into a cash flow mining business.
“This agreement sets us squarely on the path to producing our first gold in the near term,” Haines says.
“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.”
Completing the transaction is subject to numerous conditions, including a 90-day due diligence period and obtaining shareholder approval.
The company intends to move quickly to start operations and processing in order to generate cash flows for the venture.
The Adelong process plant is yet to be re-commissioned, and as a result of due diligence remaining pending, Great Divide is unable to confirm what works are required on the plant to achieve first production.
Great Divide Mining is a gold, antimony, and critical minerals explorer in Queensland. The company owns four projects across 12 tenements.
The company is attending the Noosa Mining Conference, which is held at the Peppers Noosa Resort on 13-15 November 2024. Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Great Divide Mining
