QMines (ASX:QML) has completed the $1.4 million sale of its non-core, wholly owned subsidiary QDrilling to Gas Field Services.
The transaction allows the company to focus on its flagship Mt Chalmers Copper-Gold Project in Central Queensland, where a Definitive Feasibility Study (DFS) is underway.
It also removes the costs and responsibilities of owning and operating a drilling business while maintaining access to drilling services.
Gas Field Services is paying for the acquisition in five tranches: $250,000 on 31 December 2026, $250,000 on 31 March 2027, $250,000 on 30 June 2027, and $400,000 on 30 September 2027. A final payment of $250,000 will be delivered as cash or drilling services, at QMines’ election.
A security interest over the QDrilling shares and drilling equipment backs the deferred consideration.
The drilling rig will remain at Mt Chalmers under Gas Field Services ownership.
QMines is currently progressing a 129-hole, 20,000m drilling program to extend the Mt Chalmers resource, test mineralised corridors, and potentially incorporate additional deposits into the mine plan.
Mt Chalmers hosts an ore reserve of 9.6 million tonnes, with QMines advancing the project towards a final investment decision.
Executive Chairman Andrew Sparke says the sale simplifies the business and sharpens the company’s focus.
“Our priority is now firmly on exploration and mine development,” Sparke says.
“This transaction unlocks $1.4 million in value and allows our team to concentrate on delivering the DFS, progressing project approvals, and executing our substantial drilling campaign.”
QMines is a copper and gold developer focused on its 100%-owned Mt Chalmers and Develin Creek projects in Queensland.
Write to Paula Fabe at Mining.com.au
Main image: QMines
