Pacgold (ASX:PGO) has entered into a binding strategic agreement to demerge its North Queensland exploration assets, comprising the Alice River Gold Project and St George Gold-Antimony projects, into Manda Resources, a company backed by Emerald Resources (ASX:EMR).
Pacgold notes that the demerger is ‘transformational’ for the company, providing it with an influx of funding and the opportunity to realise value in its North Queensland portfolio. Manda intends to drive exploration across these assets and the broader region.
Pacgold is driving a transition into a dedicated gold producer and developer with a focus on South Australia and New South Wales, and this streamlined portfolio will enable the company to focus on its core development and production goals at the White Dam gold mine in South Australia.
Managing Director Matthew Boyes says that the demerger is a strategic move by Pacgold that will provide significant value for shareholders.
“By spinning out our North Queensland exploration assets into Manda, we are transferring these highly prospective projects into the hands of a proven, tier-one team with demonstrable success in mine development,” Boyes says.
“Manda’s concurrent acquisition of Territory Minerals will create a dominant explorer in a region with clear multi-million-ounce potential. Importantly, it realises value for our shareholders through the in-specie share distribution and the planned Manda ASX IPO, retaining leverage to ongoing exploration success at these assets.”
Manda is currently growing a consolidated North Queensland portfolio, having also proposed to acquire the Tregoora, Northcote, Atric, and Reedy Gold Projects via the acquisition of Territory Minerals. If successful, Manda’s combined portfolio in the region will total 1.33 million ounces of JORC-compliant gold resources.
Manda is seeking to list on the ASX in late 2026, subject to market conditions.
Manda is expected to be well funded after a pre-IPO capital raising of $9 million and a proposed Australian Securities Exchange IPO listing which is expected to raise a minimum of $21 million.
Subject to shareholder approval, Pacgold shareholders will receive an in-specie distribution of one Manda share for every 6.76 Pacgold shares held, representing a total consideration of 64 million shares in Manda at an issue price of $0.25. Manda will also pay $650,000 in cash to Pacgold upon Manda’s admission to the ASX.
Emerald has invested around $6.4 million in the pre-IPO capital raise and has noted an intention to contribute an additional $4.25 million in the IPO, providing it with a 19.9% interest at listing.
Pacgold is focused on developing assets in South Australia and New South Wales proximal to the White Dam mine site. The company notes that its plant has been refurbished, extending existing leaching capacity by an additional four million tonnes.
Drilling has recommenced at Vertigo, with Pacgold preparing a resource update following the 12,000m of drilling completed in Q1 2026.
Pacgold is a mineral exploration company with a focus on South Australia and New South Wales.
Write to Amy Rotman at Mining.com.au
Images: Pacgold
