Pacgold (ASX:PGO) will acquire the White Dam Gold Operation in South Australia, located 80km southwest of Broken Hill, from GBM Resources (ASX:GBZ), in a $3.4 million cash-and-scrip deal.
the company says it is a “transformational” deal in its bid to become a near-term gold producer.
The group plans to restart production at White Dam by re-crushing and retreating existing heap leach material, minimising capital expenditure.
Managing Director Matthew Boyes describes the acquisition as “transformational”, positioning Pacgold for rapid entry into production.
“White Dam offers a clear pathway to near-term gold production and cash flow with a solid resource base, minimal restart costs, and significant exploration upside,” he said.
“This acquisition enables us to generate short-term cash flow while continuing to advance our flagship Alice River Gold Project and the St George Gold-Antimony Project in Queensland.”
The White Dam operation produced around 180,000 ounces of gold between 2010 and 2018 through heap leaching of 7.5 million tonnes of ore.
Under the acquisition terms, Pacgold will pay $1.2 million in cash, issue 15 million shares subject to a 12-month escrow, and make a contingent payment of $2.2 million upon achieving production of at least 5,000 ounces of gold.
Completion is expected by December 2025, pending shareholder and regulatory approvals.
Bell Potter and Taylor Collison will be the lead managers in an upcoming capital raise. Pacgold expects to fund the acquisition and restart operations swiftly.
The company will remain in voluntary suspension until completion of the placement, with trading expected to resume by 8 October 2025.
Write to Dan Petrie at Mining.com.au
Images: Pacgold
